The Hadera economic corporation yesterday published an international tender for privatizing the municipal water and sewage systems for a 20-year period. The winner will manage all municipal water and sewage systems, and develop all water and sewage infrastructures during the concession period.
Under the terms of the contract, the concessionaire will also receive all the revenues generated by municipal water and sewage taxes. The winner will also pledge to buy the water produced by the seawater desalination facility the Hadera municipality is planning to set up.
Hadera is the second Israeli city to opt for privatizing its water and sewage systems. Three years ago, Pardess Hanna privatized its water system, which is being operated by a Clal Infrastructures subsidiary and Severn Trent, a private water and sewage company with eight million customers in central Britain.
Following privatization, the Hadera water system will be operated as an independent unit on a cost-profit basis, separately from the municipal financial system.
Under the terms of the contract, bidders must have proven experience in operating the water systems of at least three cities. This condition will compel bidders to cooperate with international companies, because no Israeli company has such experience.
Hadera’s 80,000 residents consume 10 million cubic meters of water a year.
Published by Israel's Business Arena on 8 February, 2001