The Ashkelon 100 MCM/year BOT project Original Research Article

The Ashkelon Build, Operate and Transfer project consists of the financing, design, construction, operation and transfer of a sea-water desalination plant with guaranteed production capacity of up to 100,000,000 m3/year. This plant will be located at the Ashkelon site of the Eilat-Ashkelon Pipeline Corporation. The design of the plant is such that it enables an extension of the production capacity during the operating phase of the project. The plant will be designed, constructed and operated by a consortium made up of three international sponsors, who have created a special purpose company, VID Desalination Company Ltd. in order to carry out the project. The companies and their respective initial participation in the companyʹs share capital are the following: IDE Technologies Ltd.— 50%, Vivendi Water S.A. — 25%, Dankner Ellern Infrastructures Ltd. — 25%. The project is governed by a Build, Operate and Transfer agreement entered into between the consortium and a government agency, the Water and Desalination Authority (WDA) of Israel. The agreement will be awarded for a period of 24 years and 11 months from the effective date. The production of the plant will be sold to the WDA, whose obligations (including payment obligations) under the agreement are deemed to be obligations of the State of Israel. The water price offered by the consortium (52.7 US cents/m3) is the lowest price ever offered in a 25 year BOT project for seawater desalination.