Sorek Consortium Obtains $400 Million in Project Financing to Build World’s Largest SWRO Desalination Facility
Agreements Signed with European Investment Bank (EIB), Bank Hapoalim, Bank Leumi, Israel’s Ministry of Finance and Israel’s Water Authority
Tel–Aviv, Israel, May 23, 2011 – SDL (Sorek Desalination Ltd) - a company formed by IDE Technologies (51%) and Hutchison Water International Holdings Pte. Limited (49%), today announced that it has entered into agreements to obtain $400 million in project financing to construct and operate the Sorek desalination plant. The financing is from the European Investment Bank (EIB), Bank Hapoalim and Bank Leumi.
SDL was recently selected by the Government of Israel, in a competitive tender process, to build and operate the Sorek desalination plant, which, with a total planned capacity of 150 million m3/year, will be the largest plant of its kind in the world. The Sorek Sea Water Reverse Osmosis (SWRO) facility, to be completed in 2013, will be constructed under the BOT (Build-Operate-Transfer) model. The project is a significant milestone in both desalination capacity and water cost, which, at just ~US$0.55 per cubic meter, will result in substantial savings for the Israeli water market.
The plant, which will be approximately 100,000 square meters, will deploy advanced membrane desalination technology, including the use of 16 inch membranes for the first time in a large-scale facility. The use of this technology will result in increased water output and cost savings, together with a reduction in energy consumption. Water produced from the plant will be delivered directly to Israel’s national water distribution system.
The Sorek plant will have a significant impact on the Israeli water sector by providing around 20% of the domestic water consumption, and around 10% of the fresh water consumption in total in Israel.
Avshalom Felber, IDE’s CEO, stated: "We are pleased to announce this successful financing, another milestone achieved in the execution of our groundbreaking Sorek project. The construction phase began several months ago and is progressing according to schedule. We are grateful for the strong vote of confidence that the EIB, and that Bank Hapoalim and Bank Leumi, two of Israel’s most prominent financial institutions, have given IDE through this financing.”
Mr. Felber continued, “Following the tradition of Hadera and Ashkelon, the Sorek facility will surpass all previous records in terms of desalination capacity, while further driving down the price of desalinated water. We at IDE are proud to be the enabling force behind this change, using our proprietary technologies and know-how to bring plentiful, affordable water to arid regions throughout the globe, including especially to our base region of Israel.”
Amikam Cohen, Hutchison Water's CEO said: “The construction of the Sorek plant is an exciting technological challenge and we are deploying the world’s best technologies to produce high quality water at very low prices for Israel. The unique standing of our group in world economy played a key role in securing the financial close we announce today. Obtaining financing for the project ensures that Sorek will be a flagship project for the nation’s water market. Hutchison Water is proud to contribute its experience, know-how and capabilities to this SDL project, as well as those of Hutchison Whampoa globally. The Sorek plant is a milestone in Hutchison Water’s and Israel’s desalination history.”
About IDE Technologies Ltd.
IDE is a world leading desalination company. Since 1965, the company has built 400 desalination plants in 40 countries worldwide, with a cumulative installed capacity of over 2,000,000 m3/day. IDE's technologies for optimized, high-end thermal and membrane (Reverse Osmosis) desalination are recognized as the most advanced in the world. The company designed, built and currently operates the largest SWRO desalination plants. Its customized desalination plants provide high quality water for use in industries, mines, refineries and power stations, as well as for drinking water and agriculture.
IDE is jointly owned by two of Israel’s largest industrial enterprises: ICL Group (50%), one of the world’s leading fertilizer and specialty chemicals companies, and Delek (50%), the leading energy & infrastructure group based out of Israel.
About Hutchison Water
Hutchison Whampoa Limited (HWL) is a leading international corporation committed to innovation and technology with businesses spanning the globe. Its diverse array of holdings range from some of the world's biggest port operators and retailers to property development and infrastructure to the most technologically-advanced and marketing-savvy telecommunications operators. HWL operates in 52 countries has approximately 240,000 employees worldwide.
Hutchison Water is a division of Hutchison Whampoa Limited. Hutchison Water focuses on water technologies and solutions in the areas of desalination, wastewater treatment water re-use, water supply and water efficiency.
PR Contact:
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IDE Technologies Ltd.
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E-mail: meiravkb@ide-tech.com