KfW IPEX, EIB help finance €500m desalination plant in Israel
Germany's KfW IPEX-Bank is providing €90 million of financing, alongside €150 million from the European Investment Bank, for the construction and operation of a desalination plant in Israel.
Israeli Bank Leumi is also helping to finance the Sorek B project which, with a capacity of 200 million m3 per year, will be the biggest in the country and one of the largest in the world. Total investment volume in the project, which is located around 20km south of Tel Aviv, is about €500 million.
IDE Technologies, an Israeli-headquartered provider of advanced water treatment solutions, is the general contractor, operator and investor in the Sorek B project. Key components of the plant are being exported from Germany and elsewhere in Europe, and include high-pressure pumps, pressure vessels and main power supply equipment.
The new plant should help to ensure that demand for drinking water is met for the long-term and alleviate the pressure on local groundwater and surface water reserves. Construction is expected to last three years, meaning that commissioning is planned for 2023.
The plant will operate for a period of 25 years. During this time, the withdrawal of water will be contractually regulated by the state-run Water Desalination Administration.
