Contract signed for Ashdod desalination BOT project in Israel
Date
August 14, 2011
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Last week the Ministry of Finance of Israel signed the contract for Ashdod desalination project with Mekorot subsidiary Mekorot Development and Enterprise, which will plan, build and operate the plant.
The Ashdod desalination plant in Israel will be a build, operate and transfer (BOT) project, in which the franchisee undertakes to design, build and operate the desalination plant for a period of 26 and a half years, after which ownership of the plant will be transferred to the State. The winning company undertook to build the plant within a period of 27 months from financial close at the latest, with the plant supplying half of its overall capacity 24 months from financial close.
The Ashdod desalination plant will provide 100 million cubic meters per year, beginning in 2013, constituting approximately 15% of Israel's domestic water consumption.
On completion of the plant in Ashdod, Israel will have five desalination plants, one of which is one of the largest in the world. Together they will supply around 75% of the domestic water consumption.
Update Sept 3rdBank Hapoalim and the European Investment Bank (EIB) will head the syndicate financing the Ashdod desalination plant.
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