Cadiz Project Secures $194M WIFIA Loan Reservation for Mojave Pipeline
EPA has reserved $194 million for Cadiz’s Mojave Groundwater Bank Northern Pipeline project under the WIFIA program, enabling application for low-interest financing. Project financing now includes a $51 million equity tranche from Lytton Rancheria and ongoing due diligence for up to $400 million in private equity.
1. WIFIA Loan Application Invitation
The U.S. Environmental Protection Agency has administratively reserved $194 million for Cadiz’s Northern Pipeline under the Water Infrastructure Finance and Innovation Act, inviting the company to submit a formal application. This reservation secures access to long-term, low-interest debt that will cover a substantial portion of capital costs for the Mojave Groundwater Bank pipeline segment.
2. Funding Structure and Partnerships
Cadiz plans to combine WIFIA debt with equity, grants and municipal financing to fund project construction. Lytton Rancheria has committed an initial $51 million toward a targeted $450 million equity raise, while Cadiz is in due diligence with private investors for up to $400 million of additional equity in the special-purpose entity.
3. Mojave Groundwater Bank Project Details
The Mojave Groundwater Bank entails a 43-mile Southern Pipeline connection to the Colorado River Aqueduct and the Northern Pipeline now in financing. The system holds an estimated 30 million acre-feet of groundwater, supports up to 75,000 acre-feet of annual supply and offers one million acre-feet of imported storage capacity, enhancing drought resilience.