H2ID, a consortium of IDE Technologies Ltd. and Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN), has won the tender to build an operate the Hadera desalination facility. H2ID offered a price of NIS 0.60 per cubic meter of water. A price of NIS 0.53 per cubic meter was offered in the Ashkelon desalination facility tender, in which IDE is a member of the consortium. Delek Group Ltd. (TASE: DLEKG) and Ofer Brothers jointly own IDE. The current cost of desalinated water is NIS 2.75 per cubic meter.
H2ID beat a consortium comprising Granite Hacarmel Investments Ltd. (TASE: GRNT), Ocif Investments and Development Ltd. (TASE: OCIF), Tahal Group, and two Spanish companies Inima Servicios Europeos de Medio Ambiente SA and Aqualia GestiónIntegral del Agua SA. A third consortium comprising Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), Baran Group (TASE: BRAN; OTCBB:BRANF) and Ionics Agar Environmental earlier withdrew from the tender.
Only the Ashkelon desalination facility is currently operating in Israel. It produces 100 million cubic meters of water a year. The facility is owned by VID Desalination Company Ltd., a consortium of IDE (50%), Elran Investments Ltd. (TASE: ELIN), 25%, and Veolia Environnement (NYSE: VE; Euronext: VIE) (25%).
A 30 million cubic meter desalination facility is under construction at Palmachim, and Mekorot National Water Company plans to build a 40 million cubic meter facility, as well as a number of smaller facilities.
Published by Globes [online], Israel business news - www.globes.co.il - on September 19, 2006
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