Minister of National Infrastructures Binyamin (Fouad) Ben-Eliezer, took part today, May 22, 2008, in a special event marking the signing of the financing agreements for the desalination facility in Hadera.

The event took place at the Tel Aviv Hilton hotel and was attended by Minister Ben Eliezer, the Ministry CEO Hezi Kugler; Water Authority Director Uri Shani, Hadera mayor Haim Avitan, and representatives of the banks financing the project.

The desalination facility, of the H2ID group, is expected to produce about 100 million cubic meters of water a year, at the lowest cost so far, of about NIS 2.56 per one cubic meter of water (plus VAT.)

The financing of this project is, for the first time, led by a consortium of foreign banks, and amounts to NIS 1.5 billion according to the following breakdown: 50%  The European Investment Bank (EIB); 25% the French Calyon Corporate and Investment Bank, which specializes in long term projects; 25% Banco Espirito Santo (BES), a Portuguese investment bank.

Below are the main points of Minister of National Infrastructures Binyamin (Fouad) Ben-Eliezer's speech:

We are gathered here today in honor of the signing of the financing agreements for building a desalination plant in Hadera with a capacity of 100 million cubic meters per year.

It is not every day that we close a financial deal of this order – NIS 1.5 billion --, and it is not common that the financing bodies are foreign banks.

I wish to begin by thanking the financing bodies for their act of faith in the Israeli economy and to invite them to take part in other projects, in addition to desalination, such as private power stations, solar energy, and more.

Beyond the tender itself, this is a great day for Israel's water economy. Israel has always suffered from water shortage problems, but in recent years the country is undergoing a revolution in this area, by building desalination plants.

Let us not rely on natural resources only; it is our duty to show responsibility, take matters into our own hands, and ensure a constant water supply to the country's residents.

About a year ago I facilitated the passing of a government resolution on increasing the amount of water desalinated annually in Israel to 505 million cubic meters.

The forecasts made by the State authority for water and sewage did not materialize, and, what is worse, in the past year we have suffered a serious drought that no one foresaw.

Therefore, we are currently working on another bill for allocating an additional NIS 2 billion over the next 5 years for the solution of the water crisis; the proposed bill will be brought for approval very soon.

Next Sunday an in-depth discussion of the issue will be held at a cabinet meeting. As I see it now, the resolution likely to be taken includes, inter alia, increasing the amount of desalinated water to 750 cubic meters a year, with this amount constituting, in effect, all drinking water in Israel.

Treated waste water will be increased by another 100 million cubic meters, which will mean that Israel will be reclaiming over 95% of its secondary effluents – a percentage unprecedented anywhere else in the world.

The facility in Hadera, with a production capacity of 100 million cubic meters, in fact complements Israel's first three installations, joining the Ashkelon facility with its production capacity of 100 million cubic meters a year, and the Palmachim facility with its production capacity of 30 million cubic meters a year.

I hope that Mekorot will very soon embark on building its Ashdod facility, with a production capacity of an additional 100 million cubic meters.

Because of the dry spell our country has been going through these past few years, the government wishes to increase the output of these three installations by a total of an additional 75 million cubic meters.

Recently, the preliminary tender has been issued for yet another desalination plant, with a capacity of 100 million cubic meters, which is planned to be built at the Soreq site.

I would like to congratulate the winning group, the Water Authority people, and people of the Ministry of Infrastructures and the Ministry of Finance, on their commendable actions and to wish us all success and prosperity.