The Israeli government has accepted a proposal of H2ID Ltd., the consortium that owns the Hadera desalination plant, to boost output from 100 million cubic meters a year to 127 million cubic meters. The government has asked the company to sign an agreement on the expansion, which it expects to do shortly.
H2ID's franchise for the Hadera desalination plant expires in May 2027. The price for the increased water production will be NIS 2.60 per cubic meter, as set in the original franchise contract.
H2ID is owned in equal shares by Arison Holdings Ltd. subsidiary Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: HUCN) and IDE Technologies Ltd., a joint venture owned in equal shares by Delek Group Ltd. (TASE: DLEKG) and Israel Chemicals Ltd. (TASE: ICL). Shikun u'Binui's share rose 1.8% by midday to NIS 3.15, but Delek Group's share fell 5.6% to NIS 275.90 and Israel Chemicals' share fell 3.4% to NIS 31.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2009
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