IDE brushes aside competition and anti-trust restrictions to snap up Soreq 2 desal contract

摘要

Israeli desalter IDE Technologies is examining its options for the future after the successful securing of the contract for the Soreq 2 desalination project further cemented its place as the country's dominant desal player. In late May the company was awarded the contract to build, own and operate the 200 million m~3/year plant, based on the submission of a world record low tariff of NIS1.45 ($0.405) per cubic metre of water supplied. And as Israel's Water Authority switched focus to its next large desalination project in the Western Galilee, the question remains whether anyone will be able to effectively compete with IDE. With the award of the Soreq 2 plant, IDE will have had a hand in developing four of Israel's six major desalination projects to date, a situation that has already attracted the attention of anti-trust authorities in the country. It is not immediately apparent whether IDE will be allowed to bid for the 100 million m~3/year Western Galilee contract without making structural changes - bidding for the Soreq 2 contract was contingent on IDE selling its stake in the neighbouring Soreq 1 plant, which it did in early 2019. The company told GWI that while it had not yet been given any indication that it would have to further reduce its portfolio to bid on future projects, it was aware of the possibility and would do what it needed to do to be involved (although it wants to retain assets for the long term wherever possible). Gal Zohar, CEO of IDE Assets, the PPP wing of the company, said: "In general, IDE's approach is to be a long-term shareholder in every project we approach. We think the three roles of construction, operations and investment create an alignment of interests that means the most effective result for the client and offtaker.