Cadiz Inc. announced that the U.S. Environmental Protection Agency has selected its Mojave Groundwater Bank – Northern Pipeline Project to submit an application for a low‑interest loan of up to $194 million under the Water Infrastructure Finance and Innovation Act (WIFIA). The selection reserves the funding while Cadiz advances its application through the underwriting process.
The loan would complement the company’s planned equity capital, government grants, municipal financing and other low‑interest debt programs to fund construction of the Mojave Groundwater Bank, which includes the Northern Pipeline and a planned 43‑mile Southern Pipeline connection to the Colorado River Aqueduct. Cadiz has secured a $51 million equity tranche from Lytton Rancheria of California and is in due diligence with private equity investors for up to $400 million of additional capital.
The $800 million project aims to provide Southern California with a reliable annual supply of up to 75,000 acre‑feet of water and one million acre‑feet of imported water storage. The WIFIA loan would reduce Cadiz’s debt burden and lower overall project cost, potentially accelerating construction and delivery of water services to public and private customers.
Cadiz’s CEO Susan Kennedy said, “This agreement marks a historic milestone for Cadiz and establishes a powerful new business model for building critical infrastructure.” The project repurposes an existing 220‑mile natural gas pipeline for water conveyance, a strategy that has attracted a tribal equity partner and positioned the company to address the region’s growing water scarcity amid megadroughts and climate change.
The Mojave Groundwater Bank has faced regulatory hurdles and opposition from environmental groups, but the EPA’s selection signals a significant regulatory win. The project’s financing milestone strengthens Cadiz’s balance sheet and supports its long‑term strategy to deliver reliable water infrastructure while navigating complex environmental and political landscapes.
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