Mekorot unit seeks private investors for desalination

Mekorot is due to build the 100-million cubic meter a year desalination facility at Ashdod by 2012.

Mekorot National Water Company subsidiary Mekorot Enterprises and Development Ltd. is offering private investors an option for a 40% stake in the planned NIS 2.5 billion Ashdod desalination facility. The company made the announcement at a conference ahead of the publication of the tender. Mekorot chairman Eli Ronen, CEO Ido Rosolio, Water Authority chairman Uri Shani, and Minister of National Infrastructures Benjamin Ben-Eliezer were present.

Mekorot Enterprises is Mekorot's construction arm. The company is due to build the 100-million cubic meter a year desalination facility at Ashdod by 2012. It will be Israel's fifth seawater desalination plant on the Mediterranean coast.

The project was originally conceived as a turn key project between Mekorot Enterprises and a contractor who would build the plant for NIS 1.5 billion. However, at the conference, Mekeorot Enterprises CEO Giora Gutman said that the company might offer a partnership of up to 40% of the franchise for the sale of water to the state and in the operation of the plant.

Published by Globes [online], Israel business news - www.globes-online.com - on January 25, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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