IDE Technologies won the tender for the construction of the seventh desalination plant in Israel

Posted on Nov 12, 2022 by Ifi Reporter

IDE Technologies won the tender for the construction of the seventh desalination plant in Israel, which will be located in the Western Galilee near Nahariya. IDE will build the plant and operate it for 25 years. The state will pay NIS 1.75 per cubic meter, a significantly lower price compared to previous tenders. The facility is expected to discharge approximately 100 million cubic meters of water per year, so the IDE Group's revenues from the facility are expected to reach nearly NIS 180 million per year. Another achievement in the tender is the installation of a pipeline several kilometers long into the coast which will return the excess water from the process to the sea.
IDE prevailed over the joint offer of the Shapir Company and the Generation Capital Fund because the group did not meet the conditions of the tender, so its improved offer was not considered at all. According to the Best and Final Offer tender method, out of all the offers submitted in the tender in the first stage, the two best offers will advance to the next stage, and will be able to submit an updated offer, which includes the financial closing procedure and progress in the licensing processes. Shapir's offer did not meet the defined conditions, so the price she offered was not examined. According to Shapir, as she reported to the stock exchange, the decision of the inter-ministerial tender committee to disqualify her bid is wrong and the company will consider its steps, including legal steps.
The beginning of the construction of the facility is expected to begin in 2023 and last for about two and a half years. Today, 65% of the water in Israel that is used in private homes and in industry comes from desalination. The facility to be built is expected to increase the production capacity of desalinated water by about 13%, and will enable the connection of the northern region to the national water system. After the establishment of the facility, about 90% of the benign water in Israel intended for private homes and industry will be from desalinated sources. According to the Director General of the Ministry of Energy, Lior Shilat, the establishment of the facility "will increase the reliability of the supply in the area between Haifa and Nahariya, and will also be an important source of water for the flow of water from the national system to the Kinneret."
A significant advantage of the increase in the amount of desalinated water in Israel is the possibility in the future to expand the Israeli water supply to Jordan. Yesterday, as part of the UN COP28 conference in Sharm el-Sheikh, Egypt, which deals with environmental and climate issues, Israel and Jordan, in the presence of the United States special envoy for climate affairs, John Kerry, signed a memorandum of understanding to promote Prosperity projects in which Israel will transfer water to Jordan In exchange for the purchase of electricity produced using renewable energy in Jordan.


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