The cabinet is due to hold another emergency discussion on the water crisis at next Sunday's meeting. Minister of National Infrastructures Benjamin Ben-Eliezer is scheduled to submit a plan to boost seawater desalination from 500 million cubic meters a year to 750 million.
At a ceremony to mark the securing of financing for the Hadera desalination facility, Ben-Eliezer said the proposal would cost NIS 2 billion over the next five years. The proposal includes the construction of two more 100 million cubic meter a year desalination facilities, one by Mekorot National Water Company unit Mekorot Initiatives and Development Ltd. and the other by the private sector at Soreq. He added that the Soreq facility's output might be doubled to 200 million cubic meters a year.
The Ministry of National Infrastructures will propose increasing the industrial reuse of treated wastewater by 100 million cubic meters a year, which would increase wastewater reuse to 95%. Ben-Eliezer noted, "We cannot rely only on nature. We must take the responsibility and ensure the regular supply of water to the country's residents."
The 100 million cubic meter Hadera desalination facility is being built by the H2ID consortium, owned in equal shares by Shari Arison's Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) and IDE Technologies Ltd., a joint venture owned in equal shares by Yitzhak Tshuva's Delek Group Ltd. (TASE: DLEKG), and the Ofer's Israel Chemicals Ltd. (TASE: ICL).
The Hadera desalination facility is the third facility, after the Ashkelon and Palmachim facilities. The state will pay NIS 2.56 plus VAT per cubic meter of water produced, less than the world average.
A cabinet decision to build more desalination facilities will likely face criticism from water market sources who argue that a policy of water conservation and cleaning current wells should take precedence over investment in land and energy intensive desalination facilities.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2008
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