Minister of Environmental Protection Gilad Erdan and Minister of Tourism Stas Misezhnikov today announced their decision for a permanent solution for the environmental and tourism problems at the Dead Sea, at a special joint press conference.
The decision is based on months of discussions and staff work. The main point of the decision is that the solution for halting the rise in the water level in evaporation pool 5, on the banks of which the Ein Bokek hotels are located, is salt harvesting. The two ministers ruled that Israel Chemicals Ltd. (TASE: ICL) and the hotels' operators will bear the financing of the plan in full.
Erdan and Misezhnikov said that Israel Chemicals bore the responsibility on the principle that the polluter pays. They said that the company's widespread industrial activity was responsible for the rise in the evaporation pool's water level, which jeopardized the adjacent hotels.
The ministers also called on the Ministry of Finance to act with urgency and determination to increase the royalties from Israel Chemicals to finance the rehabilitation of the Dead Sea and the development of tourism in the area.
The full cost of the rehabilitation, including the operation of dredges for evaporation pool 5 and the construction of a conveyor belt to carry the salt removed from the floor of the pool to the northern basin of the Dead Sea, is estimated at NIS 5-7 billion.
Israel Chemicals' share price fell 1.5% by midday to NIS 55.90, giving a market cap of NIS 72 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2011
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