Mekorot National Water Company chairman Alex Wiznitzer, Minister of Finance Yuval Steinitz, and Minister of National Infrastructures Uzi Landau today signed the franchise agreement for the Ashdod desalination plant. Mekorot subsidiary Mekorot Development Enterprise Ltd. will plan, build and operate the plant to produce 100 million cubic meters of water a year. The purchase price for the water was set at NIS 2.40 per cubic meter.
The Ashdod desalination plant is due to come on line in early 2013. It will be the fourth reverse osmosis desalination plant to be built along the Mediterranean coast, following the 120-million cubic meter plant at Ashkelon, the 45-million cubic meter plant at Palmachim, and the 127-million cubic meter plant at Hadera. The Soreq desalination plant is also due to come online in 2013. The plants will produce 540 million cubic meters of water a year, amounting to 75% of Israel domestic water consumption. After the production expansion of the current plans is completed, the plants will produce 750 million cubic meters of water a year by 2020.
Mekorot will plan and build the Ashdod desalination plant and operate it for 26.5 years. The contractors undertook to complete construction of the plant within 27 months from financial close, and that it will operate at 50% capacity within 24 months.
Wiznitzer noted that the Ashdod desalination plant will cost NIS 1.5 billion to build. He added, "On completion of the plant, Mekorot will also complete construction of the New National Carrier, which will receive water from all the desalination plants and bring about a revolution in the direction in which water is supplied in Israel - from west to east and to other directions. The water sector's reliance on desalinated water will also enable the rehabilitation of Israel's natural water reserves."
Published by Globes [online], Israel business news - www.globes-online.com - on August 11, 2011
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