Tender for fourth desalination plant draws major bids

Sources inform ''Globes'' that at least four or five consortia will likely submit bids today in the presorting tender to build and operate Israel's fourth desalination facility at Soreq. The 100-million cubic meter a year plant will cost NIS 1.5-2 billion. The facility is due to come on line in 2012.

The consortia are:

• IDE Technologies Ltd. and Hutchison Whampoa Ltd. (HKSE:0018). IDE is jointly owned in equal shares by Israel Chemicals Ltd. (TASE: ICL) and Delek Group Ltd. (TASE: DLEKG). For Hutchison, the controlling shareholder in Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), this would be its first investment in Israeli infrastructure.
• Arison Holdings Ltd. subsidiary Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) with General Electric Company (NYSE: GE), although they may file separate bids.
• Azrieli Group subsidiary Granite Hacarmel Investments Ltd. (TASE: GRNT) unit GES Global Environmental Solution Ltd. with Baran Group (TASE: BRAN; Pink Sheets:BRANF) and a Spanish company.
• Kardan NV (TASE: KRNV;AEX:KARD) subsidiary Tahal Group and Veolia Environnement SA (NYSE: VE; Euronext: VIE).

The original deadline for submitting bids in the Soreq desalination plant tender was July, but it was repeatedly postponed because of comments to the tender terms. The state will guarantee a minimum price for the water produced during the 25-year franchise period.

More bidders are participating in the Soreq tender than participated in the earlier desalination tenders for plants at Hadera, Ashkelon, and Palmachim.

Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2008

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