Cadiz Secures Guaranteed Maximum Price for Northern Pipeline Project

The agreements, executed by the company's affiliate Fenner Gap Mutual Water Company, establish fixed maximum costs for core components including pump stations and pipeline replacements. This delivery structure allows the company to retain control over the procurement of major equipment while insulating the project against cost volatility during the build phase.

Following the U.S. Bureau of Land Management’s recent approval of the right-of-way grant, these contracts provide a foundation for upcoming capital raises. Cadiz is currently pursuing a mix of funding sources, including a $194 million application through the EPA’s Water Infrastructure Finance and Innovation Act program. The San Bernardino Water and Power Authority, a joint entity formed earlier this year, is expected to facilitate this process through the issuance of municipal bonds.

Beyond budget certainty, the contracts include a benefit-sharing clause designed to incentivize contractors to drive total project costs lower. These efforts are part of a broader strategy to attract equity investors as the company works to transition its Mojave Desert infrastructure from the planning phase into active construction.