Cadiz Mojave Groundwater Bank Northern Pipeline Project Selected to Submit Application for $194 Million WIFIA Loan

Core Insights - The U.S. Environmental Protection Agency has selected the Mojave Groundwater Bank – Northern Pipeline Project to apply for a low-interest loan of up to $194 million under the WIFIA program, aimed at funding capital costs for significant water infrastructure projects [1] - The project is expected to enhance water supply flexibility and drought resilience for millions of Californians by interconnecting the Colorado River and California State Water Project systems [1] - The company plans to finance the project through a combination of equity capital, government grants, municipal financing, and low-interest debt programs, including WIFIA [1] Funding and Financial Structure - The EPA has reserved $194 million for the Northern Pipeline Project, allowing the company to advance its application through the WIFIA underwriting process [1] - The company is also in discussions with private equity investors to secure up to $400 million for the project, alongside a $51 million investment from Lytton Rancheria as part of a larger $450 million equity capital raise [1] - The financing strategy includes seeking additional WIFIA funding for the Southern Pipeline and other project components [1] Project Overview - The Mojave Groundwater Bank is a conjunctive-use groundwater storage project located in southeastern California, designed to store an estimated 30 million acre-feet of groundwater [1] - The project is approved to provide a reliable annual supply of up to 75,000 acre-feet per year, in addition to one million acre-feet of imported water storage capacity [1] - The project aims to address the impacts of climate change on clean water access through innovative water supply, storage, pipeline, and treatment solutions [1]