H2ID Signs $80M Financing Agreement To Expand Israel's Hadera's Desalination Facility
H2ID, a consortium owned by IDE Technologies and Shikun & Binui (Housing and Construction), announced the signing of a $80M financing agreement to finance the expansion of the reverse osmosis desalination facility in Hadera, Israel, by 27 million cubic meters, to a total annual production of 127 million cubic meters. The total investment in Hadera's facility, including the expansion, is valued at 1.5 billion Israeli Shekel ($381M).
The financing agreement for the expansion of Hadera's facility follows the financial closure of the original project, in November 2007, according to the following breakdown: 50% the European Investment Bank (EIB); 25% the French Calyon Corporate and Investment Bank; 25% Banco Espirito Santo (BES), a Portuguese investment bank.
The expansion project is financed by EIB, Calyon Corporate and Investment Bank, BES and two Israeli banks: Bank Hapoalim and Discount Bank.
"The financing agreement with the Israeli and foreign banks is an expression of confidence in the partnership between IDE and Shikun & Binui in Hadera's desalination project, especially in the context of the current conditions in the credit market," said Avshalom Felber, IDE's CEO. "The expansion of the facilities in Hadera and Ashkelon strengthens IDE's position as a global leader in water technology, helps Israel's water economy which suffers from a severe shortage, and contributes to Israel's position as a global leader in desalination."
Hadera's desalination facility was ordered by Israel's government and will serve the national system. The facility is now in an advanced construction phase and is planned to produce desalinated water gradually from the end of 2009. It will produce, after the expansion, 127 million cubic meters of high quality drinking water per year.
The plant, which is constructed and will be operated by H2ID, is located at the "Rabin Lights" power station in Hadera. It will be completed during 2010. The project is based on the Build-Operate-Transfer (BOT) principle.
The size of the facility is 74,000 square meters (1000 meter length, 50-150 meter width). It is divided into two plants – eastern and western. Both plants have similar production capacity, and each plant is able to operate separately and independently. The desalination process will assure that the desalinated water quality will be suitable for any use.
About IDE Technologies
IDE Technologies is a pioneer and world leader in water technologies. The company specializes in the development, engineering, production and operation of advanced desalination systems and innovative industrial solutions. Over the past four decades, IDE has established itself as the clear leader of technology and cost effectiveness for both thermal and membrane (Reverse Osmosis) technologies – such that many of the largest desalination projects in the world are IDE projects.. To date, the company has delivered some 400 plants of various types and sizes throughout the world, providing high quality desalinated water for industries, mines, refineries, and power stations, as well as for municipal and agricultural use. IDE is jointly owned by two of Israel's larges industrial enterprises: the ICL group (50%), one of the world's leading fertilizer and specialty chemical companies; and the Delek group (50%), a leading international holding conglomerate. For more information about IDE Technologies, please visit www.ide-tech.com .
SOURCE: H2ID