Spokesman Office 1 February 2009
Mekorot Development and Initiatives Ltd, a subsidiary of Mekorot National Water Company published today, 1 February 2009, an international tender for the planning and construction of a seawater desalination facility at Ashdod as a turnkey project. The seawater desalination facility that will be built at Ashdod will have the capacity to produce 100 million cubic meters of fresh water a year, and will be a major element for solving Israel’s water problems and the implementation of the government’s water policy.
The project will be carried out through a special project company (SPC) of Mekorot Development and Initiatives, which holds the franchise to build the facility and operate it for 25 years. The company will sign an agreement with the State for the sale of the desalinated water during the entire franchise period, and it will sign a contract with a construction company selected in the tender published today to build the facility.
The seawater desalination facility at Ashdod is a BOT (build, operate, transfer) project. It is a collaborative venture between the private and public sectors, in order to build the facility at the lowest possible cost while optimally sharing the risks between the developer, the State, and the financing institutions.
In addition, for the first time in Israel, the tender includes an option for the winner in the tender to become a partner in the SPC and in the project operating and maintenance (O & M) company, with a stake of up to 40%. The seawater desalination facility at Ashdod is due to begin producing desalinated water in early 2012.
At an advance tender conference, held on 22 January 2009, information was provided about the project, the tender, the threshold conditions, contractor specifications, timetable, and other issues. The objective of the conference was to enable the companies to prepare in advance for submitting bids in the tender, thereby shortening the tender’s timetable.
It is important to emphasize that Mekorot Development and Initiatives, which has promised the government to meet a tight and rigid timetable to execute the project, meets, and will meet, this commitment.
For further information: Hila Izhak, Mekorot Spokeswoman, 03-6230705, beeper - 53552