Soreq winner's bid among world's lowest desalination prices

The bid is expected to save the economy NIS 1.3 billion.

The SDL Group comprising Hutchison Water Ltd. and IDE Technologies Ltd. has won the Soreq desalination tender.

This is Israel's largest desalination tender issued so far, and is for 150 million cubic meters of water annually, requiring an estimated investment of NIS 2 billion.

IDE is owned jointly by Delek Group Ltd. (TASE:DLEKG) and Israel Chemicals Ltd. (TASE: ICL).

The price offered by the winning bid is particularly low by world standards - NIS 2.19 per cubic meter, and will in effect be even lower at NIS 2.01 per cubic meter. This is because the tender included the option of setting up a power station based on natural gas to supply the100 megawatt needed each year to fuel the plant. The power station will greatly reduce costs.

The Ministry of Finance estimates that the winning bid will save the economy NIS 1.3 billion.

The desalination plant is scheduled to begin supplying water by 2013. Output from the Soreq plant near Yavne will be the equivalent of 20% of household consumption of water in Israel.

Published by Globes [online], Israel business news - - on December 15, 2009

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

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