Stopping a ‘marriage made in heaven’
The reason the Israeli firm IDE Technologies on Tuesday won the multi-billion shekel tender to build the world’s largest desalination plant at Kibbutz
Palmahim, according to senior Israeli officials, is because the price it gave for desalinating a cubic meter of water was far cheaper than the price promised by the nearest competitor.
America’s “economic future is at stake.”
Regarding Sorek 2, the Trump administration specifically flagged Hutchison’s possible involvement in the construction of the desalination plant, which will be in Kibbutz Palmahim and cost more than NIS 5 billion. In addition to being an important infrastructure project for Israel, the plant is near the Sorek Nuclear Center and the Palmahim airbase.
US concern about Chinese companies’ involvement in major infrastructure projects in Israel in recent years is partly due to the ability of Chinese operatives to gather intelligence while working on them, as well as the massive economic, social and environmental losses, and even casualties, which could be inflicted if that infrastructure is damaged.
The official statement from the Finance, Energy and Water Resources ministries does not mention Hutchison or China. It simply states that Kadima-headquartered IDE Technologies, which partnered with Bank Leumi, submitted the winning PPP bid, promising desalinated water at the cost of approximately NIS 1.45 per cubic meter, about 65 agorot cheaper than existing desalination solutions in Israel today.
The reduced cost is expected to save households a total of NIS 3.3b. ($940m.) during the lifetime of the plant, which is expected to produce 200 million cu.m. of potable water per year, increasing the country’s annual desalinated-water production by 35% to 785 million cu.m., approximately 85% of Israel’s household and municipal water needs.
The project will be financed by an international consortium, including Bank Leumi, German state-owned KfW and a €150m.