Report: The Finance Ministry wants to cancel Mekorot's desalination plant contract.
Hebrew daily "Ma'ariv" reports that Prime Minister Benjamin Netanyahu will likely decide in favor of Mekorot National Water Company in its dispute with the Ministry of Finance over the Ashdod desalination plant.
The Ministry of Finance wants to cancel Mekorot's contract to build the facility, on the grounds that the company is not in compliance with the contract. The ministry wants to publish a new international tender for the plant, which is a critical factor in the plan to solve Israel's water shortage.
Mekorot says that it has met the contract's terms, but that the Ministry of Finance is trying to cancel the project because of a "fight for prestige". Mekorot's position is supported by the Ministry of National Infrastructures.
Mekorot and Ministry of National Infrastructures officials recently met Netanyahu. No Ministry of Finance officials were invited. Netanyahyu will reportedly accept Mekorot's position.
Published by Globes [online], Israel business news - www.globes-online.com - on January 30, 2011
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