Cadiz Inc. (NASDAQ: CDZI) was selected by the U.S. Environmental Protection Agency to submit an application for a low‑interest loan of up to $194 million under the federal Water Infrastructure Finance and Innovation Act (WIFIA) for its Mojave Groundwater Bank – Northern Pipeline Project. The EPA’s selection reserves the funds while Cadiz completes the WIFIA underwriting process, marking a critical step toward securing the financing needed for the project.
The Mojave Groundwater Bank is an $800 million investment that includes the Northern Pipeline and a planned 43‑mile Southern Pipeline that will connect to the Colorado River Aqueduct. The project is approved to provide 50,000 acre‑feet of water per year and 1 million acre‑feet of underground storage, a capacity that has been cited by multiple sources as the baseline for the bank’s supply capability.
Cadiz plans to combine the WIFIA loan with equity capital, government grants, municipal financing, and other low‑interest debt. Equity capital from the Lytton Rancheria of California has already been committed up to $51 million, and the WIFIA program can finance up to 49 % of eligible project costs, providing a significant portion of the capital needed for the bank’s construction.
Cadiz’s financial profile underscores the importance of the WIFIA selection. The company reported a net loss of $31.1 million for the year ended December 31, 2024, and its operating margin and net margin were –155.4 % and –206.65 % as of February 17, 2026. The loan is therefore a key step in de‑risking the project’s financing and moving the bank closer to construction.
The project has faced opposition from environmental groups and politicians, including Senator Dianne Feinstein, and has navigated regulatory hurdles such as California Water Code Section 1815 and a prior rejection by the California State Lands Commission. Cadiz’s partnership with Native American tribes, notably the Lytton Rancheria of California, has been a landmark collaboration that supports the project’s financing and community engagement.
Susan Kennedy, Chair and CEO, said: "The public‑private partnership business model is the best way to finance critical large‑scale water infrastructure today." The announcement signals Cadiz’s confidence in the project’s viability and its ability to secure diversified financing.
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