Three groups have submitted bids to the state for the construction of Israel's sixth desalination plant in the Western Galilee, which will be able to desalinate 100 million cubic meters of water per year. The Ministries of Finance and Energy and the Israel Water Authority announced that the bids were received from IDE, controlled by Amir Lang and Avshalom Felber, GES Group, controlled by Generation Capital together with Shapir Engineering and Industry (TASE: SPEN), and A4 Group.
The project will cost an estimated NIS 1 billion to build.
The aim of the Western Galilee plant will be to supply water and improve the reliability of water supply to Haifa, the Western Galilee and the Upper Galilee. The announcement said that, "The tender was published following the government decision in June 2018 to increase the amount of desalinated water. Construction of the plant is due to be completed in 2025, and it will join the existing plants in Ashkelon, Ashdod, Palmachim, Hadera and Sorek."
According to the terms of the tender, the plant will be built as a Public Private Partnership (PPP) will the tender winners responsible for planning and financing the project, construction and operation for 25 years after which it will return to state ownership.
The announcement said, "The future plant will produce at least 100 million cubic meters of water annually and will bring total production of desalination plants in Israel to about 885 million cubic meters of water per year, representing 85%-90% of household and industrial water consumption of fresh water in the economy."
Two of the three tenders bids with the highest points awarded will be selected to advance to final consideration and will need to form an agreement with banks to support the financing, after which they will be given the opportunity to improve their bid.
Published by Globes, Israel business news - en.globes.co.il - on July 29, 2021
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