Minrav Holdings Ltd. (TASE: MNRV), controlled by contractor Abraham Kuznitsky, is the winner of the Mekorot National Water Company tender for constructing a desalination plant in Ashdod. The tender is worth NIS 1.5-2 billion. The result emerges from the pricing process held this after noon between the Minrav consortium and the consortium led by Arison Holdings unit Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: SKBN). Mekorot has released an official announcement confirming the earlier “Globes” report.
Mekorot subsidiary Mekorot Development & Enterprise Ltd. Announced that the IVM consortium, comprising Minrav and Spain's Valoriza Agua SL, a division of Sacyr Vallehermoso SA (IBEX: SYV) subsidiary SADYT, had won the tender.
The Ashdod desalination plant is due to produce 100 million cubic meters of fresh water a year beginning in 2012 at a 65-dunam (16.25-acre) site in the north Ashdod industrial zone. Mekorot National Water Company subsidiary Mekorot development & Enterprise Ltd. will operate the plant for 25 years, under a BOT (build,operate, and transfer) contract with the government. The tender gives the winner an option to acquire up to 40% of the desalination plant company.
Bank Hapoalim (TASE: POLI) will lead the funding for the project. The European Investment Bank (EIB) reportedly wants to join on up to half of the NIS 1.5 billion financing for the project.
Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009