Historic $1 billion flood control contract goes to Spanish infrastructure giant.

By THE STAR STAFF

In a major move to fortify Puerto Rico’s capital against natural disasters, the U.S. Army Corps of Engineers (USACE) Caribbean District has awarded a landmark $1.078 billion contract to Spanish infrastructure giant Ferrovial.

The deal represents the largest contract ever granted by the USACE on the island.

The massive engineering undertaking focuses on the Río Piedras channel, aiming to overhaul the region’s flood defenses through a series of significant structural enhancements.

The work will span a critical corridor of San Juan, stretching from the José de Diego Bridge, passing the Roosevelt Avenue Bridge, and concluding in the vicinity of Luis Muñoz Marín Park. Ferrovial’s technical mandate includes:

* Channel optimization: Extensive widening and deepening of the existing waterway through specialized dredging.

* Structural fortification: Construction of two massive drilled-shaft floodwalls, each measuring 5,200 feet in length.

* Utility & system upgrades: A comprehensive relocation of essential water, sewer, and electrical lines, alongside modernized stormwater management systems.

Beyond the physical construction, the project is poised to become a significant economic engine for the region. Estimates suggest the initiative will generate more than 10,400 jobs -- comprising 8,248 direct construction roles and 2,205 indirect positions.

Once operational, the improved defenses are expected to prevent roughly $126 million in annual flood-related damages. Col. Charles L. Decker, commander of the USACE Caribbean District, said the stakes for local residents are high.

“Nearly 98% of the damages this work prevents would otherwise fall on homes, schools, and local businesses,” Decker noted, emphasizing that the investment is as much about community reinvestment and public safety as it is about civil engineering.

The project marks a pivotal step in strengthening the “economic vitality” of San Juan’s most vulnerable districts, providing a long-term shield against the perennial threat of tropical flooding, officials said.