Jordan and Israel tender $800 million water PPP project

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Jordan and Israel tender $800 million water PPP project

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Israeli Interior Minister, Silvan Shalom, and Jordanian Water and Irrigation Minister, Hazim El Naser, have announced the launching of the tender process for the Red-Dead water PPP project.

The prequalification tender has already been issued. This announcement comes after Israel and Jordan signed, on 26 February this year, a bilateral agreement to carry out the project.

The water PPP project will involve the development of supply water facilities to serve both countries. The new facilities will also increase the flow of water into the Dead Sea, which is currently suffering a severe depletion.

To be more specific, the project involves the development of a 65 million cubic meter (MCM) desalination plant north of the Aqaba airport in Jordan and the pipeline conveyance system. The project could also include the development of a grid-connected hydroelectric power station.

Jordan will use a total of 30 MCM while Israel will use the remaining 35 MCM. The plan is expected to be expanded to rise a total capacity of 85 MCM, at that time, Israel will use 50 MCM and Jordan the remaining 35 MCM.

The first phase of the project will be developed on a build, operate and transfer (BOT) basis and the total project investment for this phase is estimated at US$800 million.

As part of the bilateral agreement and in return for Israel's south southern allowances, Jordan will be able to purchase a total of 50 MCM per year from Lake Kinneret.

Interested parties must submit their qualification documents on or before 30 March 2016. The parties are encouraged to contact the Jordanian Water and Irrigation Ministry and Jordan Valley Authority to obtain the pre-qualification documents on or before 30 January 2016 .

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