The state of Israel has signed the concession agreement with IDE Technologies for t IDE Technologies Sorek B PPP project, for the Design, Finance, Construction, Operation and Maintenance of a seawater desalination plant based on Reverse Osmosis technology, which will be the largest desalination plant in Israel.
With a capacity of 200 million m3 per annum, Sorek II will become one of the largest desalination plants in the world. The project marks a milestone in the desalination industry with cutting edge technology to improve energy consumption and carbon emissions.
IDE Technologies has offered an exceptionally low water price of NIS 1.45 (US$ 0.41).
Besides the signing of the concession agreement, the financial closure documents were signed as well for the approximate value of EUR 500 million (US$ 562.39 million). The main financiers of the project are KfW IPEX-Bank, the Israeli Bank Leumi, and the European Investment Bank.
The European Investment Bank is providing EUR 150 million (US$ 168.72 million) and KfW IPEX-Bank is providing EUR 90 million (US$ 101.23 million) of financing for the construction and operation of a highly advanced desalination plant.
The project will be located around 20 km south of Tel Aviv. Construction of the plant is expected to last three years, and the commissioning is expected for 2023. Sorek B will then produce around 200 million m3 of drinking water a year, providing 25 per cent of Israel’s water supply. The plant will operate for a period of 25 years.
Markus Scheer, member of the Management Board of KfW IPEX-Bank, comments: “In financing the Sorek B seawater desalination plant, we are actively contributing to improving the supply of drinking water in Israel. It is absolutely essential to tap into new, unconventional water resources in Leumi order to supply the Israeli population while also enabling sustainable development for parts of the agricultural sector as well as industry. We are more than proud to support our client IDE Technologies in this project and to finance the facility together with Leumi and EIB.”
Shmulik Arbel, Head of Bank Leumi's Corporate Division, said: "Leumi's decision to lead the financing for the Sorek B project, alongside KfW IPEX-Bank and leading Israeli and foreign financial institutions, continues Leumi's strategy to be a leader in Israel's national infrastructure sector, which is a significant growth engine for the entire Israeli economy. We are proud to take part in this important project, which is expected to be the largest of its kind in the world and significantly increase Israel's water resources, together with IDE Technologies, one of the world's most experienced and highly respected water treatment companies".
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