The tender to build and operate the 150 million cubic meter a year Soreq desalination plant has been closed, with three consortia submitting bids in the NIS 2 billion project. The tenders committee will now review the bids, a process that is due to take two to three months.
When the winner is announced, the process for securing financing will begin, which will take a year. Construction can then get underway. For the first time in tenders of this kind, the contract permits earthworks for the project to begin subject to significant progress in securing the financing, which means that construction could begin in 2010.
The Soreq desalination plant is due to begin supplying 100 million cubic meter a year 30 months after securing the financing, with the amount increasing to 150 million cubic meter a year four months later. The plant is scheduled to come on line in 2012.
Three consortia in the Soreq desalination plant tender are: IDE Technologies Ltd. (owned in equal shares by Delek Group Ltd. (TASE: DLEKG) and Israel Chemicals Ltd. (TASE: ICL)) and Hutchison Whampoa Ltd. (HKSE: 0018) unit Hutchison Water Ltd., in equal shares; Arison Holdings Ltd. unit Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: HUCN) with Azrieli Group unit Granite Hacarmel Investments Ltd. (TASE: GRNT) (40% each), and Shafir Civil and Marine Engineering Ltd. (20%); and Kardan NV (TASE: KRNV;AEX:KARD) unit Tahal Group with Veolia Environnement SA (NYSE: VE; Euronext: VIE) unit Veolia Environmental Services Israel Ltd., in equal shares.
Published by Globes [online], Israel business news - www.globes-online.com - on October 1, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009