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calgov2002: for old calgov2002 articles. calgov2002: for new calgov2002 articles. Other Bump Lists at: Free Republic Bump List Register |
Jan 31,2002
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Saudi Financier To Bail Out Cadiz
Oil money will be pumped into aquifer project.
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Saudi Financier To Bail Out Cadiz Cadiz Inc., an agribusiness company that plans to store and sell water from a Mojave desert aquifer, is seeking a bailout from a Saudi prince to stay afloat. The investor is the Kingdom Agricultural Development Company (KADCO), a private Egyptian company controlled by Prince Alwaleed bin Talal bin Abdul Aziz Alsaud, the member of the Saudi royal family whose $10 million contribution for post-September 11 reconstruction was rejected by former New York Mayor Rudy Giuliani. The Cadiz project would pump water from the Colorado River during wet years, store it in an underground aquifer, and sell it — along with native groundwater — to Los Angeles during dry years. Environmental groups, members of the scientific community, and native rights groups oppose the Cadiz project on grounds that the rates of water extraction that Cadiz plans are unsustainable. The project must be approved by the Metropolitan Water District of Southern California (MWD) board of directors. The MWD board vote is subject to strong political pressure. Keith Brackpool, campaign contributor to Governor Gray Davis and currently serving as Davis' water advisor, is the chairman and founder of Cadiz, Inc. Brackpool's relationship with the governor is solid enough for Brackpool to substitute for Davis at public speaking events. Cadiz, however, is on shaky financial footing, with significantly more debt than assets. Those assets are owned primarily by Sun World International Inc., a wholly owned subsidiary of Cadiz, making Cadiz and Sun World virtually the same enterprise. A Cadiz press release dated January 16 reveals that Cadiz and KADCO reached an initial agreement on that date under which KADCO would buy 49.75 percent of Sun World. Cadiz and its chairman would retain Sun World's remaining 50.25 percent, along with putative control of the project. The deal between KADCO and Cadiz won't be sealed until April 30, according to Cadiz. Environmentalists were quick to point out the risk involved in embarking on such a massive development project when the company backing the project is in financial straits. "This demonstrates the inadequacy of this company as a reliable or stable partner for the MWD," said Jane Kelly of the California office of Public Citizen. "The investment Cadiz is seeking should alarm the MWD board." |
Critics Raising Concerns About Cadiz Water Project
OR