Cadiz signs $403M construction contracts for Northern Pipeline

Cadiz, Inc. (NASDAQ: CDZI) announced that its affiliate Fenner Gap Mutual Water Company has executed principal construction contracts for the Northern Pipeline conversion project, establishing estimated capital expenditures of approximately $403.3 million to place the pipeline into service.

The contracts use a Construction Manager at Risk delivery model that sets guaranteed maximum prices for principal construction components, including pump stations and pipeline replacement. The pricing also incorporates owner-procured equipment and materials, as well as purchase options and supplier quotations for other necessary components.

The announcement follows the U.S. Bureau of Land Management's July 10, 2026 approval of a right-of-way grant authorizing construction, conversion, and operation of the Northern Pipeline for water conveyance across federally managed lands. Fenner Gap subsequently completed required submittals to the agency, including payment of a reclamation bond and construction notifications.

Cadiz said the guaranteed maximum price structure is intended to reduce construction cost uncertainty and establish a defined capital budget to support project financing for the Mojave Groundwater Bank. The contracts include a benefit-sharing mechanism designed to incentivize construction partners to reduce total project costs.

The company said it continues to pursue equity capital, municipal debt, and federal infrastructure financing. The contracts are expected to support Cadiz's previously announced application for up to $194 million through the U.S. Environmental Protection Agency's Water Infrastructure Finance and Innovation Act program.

Earlier this year, San Bernardino County and Fenner Gap formed the San Bernardino Water and Power Authority, a Joint Powers Authority, which is expected to support project financing through the issuance of municipal bonds and other debt instruments.

You May Also Be Interested In

• GE HealthCare (GEHC) call put ratio 5.7 call to 1 put with a focus on July 31 weekly 68 calls
• MasterCard (MA) call put ratio 1 call to 1 put into quarter results
• Tersis Technologies Appoints Plastics Recycling Veteran Paul Vanderpool as Strategic Advisor to PolyCycle