Cadiz announced that its affiliate Fenner Gap Mutual Water Company has executed the principal construction contracts for the Northern Pipeline conversion project, following federal approval of the right-of-way grant for the pipeline. The agreements utilize a Construction Manager at Risk delivery model that establishes guaranteed maximum prices for the project’s principal construction components, including pump stations and pipeline replacement.
The contracts, together with contractual pricing for owner-procured equipment and materials, as well as purchase options and supplier quotations for other necessary components, establish the estimated capital expenditures required to place the Northern Pipeline into service at approximately $403.3 million. The CMAR delivery structure provides Fenner Gap with contractually established guaranteed maximum prices for the project’s principal construction packages while allowing the company to directly procure major long-lead equipment and materials.
As previously announced on July 10, 2026, the US Bureau of Land Management approved a right-of-way grant authorizing construction, conversion, and operation of the Northern Pipeline for water conveyance across BLM-managed lands under Title V of the Federal Land Policy and Management Act. Earlier this year, San Bernardino County and Fenner Gap formed the San Bernardino Water and Power Authority, a Joint Powers Authority, to support the planning and development of water and energy infrastructure projects in San Bernardino County, which is expected to play a key role in supporting project financing through the issuance of municipal bonds and other debt instruments.
The company continues to advance efforts to secure equity capital, municipal debt, and federal infrastructure financing. The CMAR contracts are expected to support these financing activities, including the company’s previously announced application for up to $194 million in financing through the US Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act program. The contracts also establish a benefit-sharing mechanism to incentivize construction partners to further reduce the project’s total cost.
