Water

Like the other countries in the region, Israel is confronted with a crucial water deficit and deterioration of the quality of its resources. The projected increase in needs over the long term has led the government to step up efforts to mobilise water.

Natural resources provide some 1750 million m³ (mcm) on average per year, to which is added approximately 300 mcm of recycled water and 150 mcm of rainwater and storm runoff.

The public company Mekorot is the main producer of water resources. The company was restructured in 2004 and a new holding company (Mekorot Holding) set up, entirely controlled by the State and managing three subsidiary companies: “Mekorot Water Supply” (in charge of the national water supply system), “Mekorot Water Solution” (which handles project development, in particular desalination of water, irrigation and water treatment), and “Mekorot Assets” (in charge of managing the company’s assets).

Mekorot provides more than 1.3 billion cubic metres of water per year, more than 90 percent of drinking water consumption, and 70 percent of the water produced in Israel, the remainder being produced by agricultural communities and certain municipalities. The engineering company Tahal is responsible for planning and managing storage facilities.

Israel’s environmental industry counts some 250 small and medium-sized companies. A national program has been designed to overcome the current water shortage within 10 years through initiatives such as re-inflating aquifers. The government will create seawater desalination as well as water treatment and purification plants. Two desalination facilities, at Ashkelon and Hadera, have been launched, funded in part by private investment. The Ashkelon seawater reverse osmosis (SWRO) plant started production in August 2005. Initially running at around 30 percent to 40 percent capacity, it will ultimately provide an annual 100 million m³ of water, roughly 5 to 6 percent of Israel’s total water needs or around 15 percent of domestic consumer demand. The tender for construction of a desalination facility in Hadera was launched in 2006. It will involve a BOT (Build, Operate, and Transfer) arrangement, meaning that the winner will plan, construct, operate and maintain the facility, then return it to the State at the end of a 25-year period. The desalination facility will produce 100 million cubic meters of water annually. The cost for constructing the facility is estimated at NIS 1 billion.

The French Development Agency (AFD) has approved a grant of 2 million euros to finance feasibility studies for a water supply canal connecting the Red Sea to the Dead Sea via Jordan. The planned 180 km conduit would carry 1.8 billion m³/year of seawater to associated power desalination projects and provide 850 million m³/year of fresh water to Jordan, Israel, and Palestine.

Mekorot has launched WaTech, a program that involves private contractors in water exploration and project development, allowing (for example) the start-up company Atlantium to develop a system of hydro-optic disinfection of water.

A number of tenders will be published by 2010, in particular treatment of groundwater and rehabilitation of polluted wells, liquid waste processing, purification of drains and centralisation of sewerage systems, and quality control of water.

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