Jordanian government to award Red - Dead water PPP project

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Jordanian government to award Red - Dead water PPP project

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Jordanian government has announced it is set to award the contract for the first phase of the Red Sea-Dead Sea Water Conveyance Project (Red-Dead).

Israeli Interior Minister, Silvan Shalom, and Jordanian Water and Irrigation Minister, Hazim El Naser, launched jointly the the tender process for the project in December 2015.

Currently, the Water Ministry is studying the pre-qualification proposals and a technical committee is in the final process of studying and evaluating the proposals for the project, which will see up to 2 billion cubic meter (MCM) of seawater getting transferred from the Red Sea to the Dead Sea annually.

Seventeen international consortia have submitted bids in May this year and up to 10 companies will be prequalified for the project at the end of this month.

The first phase of the project will be developed on a build, operate and transfer (BOT) basis and the total project investment for this phase is estimated at US$800 million.

The water PPP project will involve the development of supply water facilities to serve Israel and Jordan The new facilities will also increase the flow of water into the Dead Sea, which is currently suffering a severe depletion.

To be more specific, the project involves the development of a 65 million MCM desalination plant north of the Aqaba airport in Jordan and the pipeline conveyance system. The project could also include the development of a grid-connected hydroelectric power station.

Construction is planned to start during the first quarter of 2017.

In 2013, Jordan signed a MoU with Israel and Palestine for the implementation of the first phase of the project

Jordan will use a total of 30 MCM while Israel will use the remaining 35 MCM. The plan is expected to be expanded to rise a total capacity of 85 MCM, at that time, Israel will use 50 MCM and Jordan the remaining 35 MCM.

As part of the bilateral agreement and in return for Israel's south southern allowances, Jordan will be able to purchase a total of 50 MCM per year from Lake Kinneret.

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