2005 - 2006 - Pinsent Masons Water Yearbook 2012

ISRAEL - PALESTINE PART 2: COUNTRY ANALYSIS
MAJOR CITIES
City 2000 2015 Status
Tel Aviv 2,001,000 2,392,000 No privatisation plans at present
Sector Developments
Israel’s water industry was liberalised in 2003. The Water Commission issued regulations that require
the state-owned Mekorot Water Company to purchase brackish water desalinated by private
producers. Mekorot has agreed to purchase 8.5 million m 3 of water annually from a JV between
kibbutz Maagan Michael on the Mediterranean coast and Ionics at US$0.35 per m 3 , 30% below the
cost of water from Veolia’s Ashkelon plant, reflecting the lower of desalinating brackish water. The
potential for brackish water development is estimated at 180 million m 3 per annum.
Licenses for setting up independent water and sewage companies were first awarded in 2003, the
first two being to Rishon Le Zion and Metullah. The intention is to allow these entities to be privatized
at a later date. Jerusalem, Haifa, Ashdod and Petah Tikva are also setting up municipal water and
sewage companies.
Private sector contracts awarded (Please see the relevant company entry for details)
Location Contract Company
Ashkelon 25 year, water desalination BOT VE
Israel has been developing a series of desalination projects but it became evident in 2004 that these
were facing various difficulties. The original target was for 315 million m 3 of desalinated water by
2006 but this level is now unlikely to be reached before 2009. Production in 2006 is likely to be in the
region of 160 million m 3 . The only project performing to expectations is VE’s.
Private sector company operations (Please see the relevant company entry for details)
Company Parent company (country)
Population served
Water Sewerage Total
VE VE (France) 700,000 0 700,000
Export of water from Turkey to Israel
Negotiations have been underway between Turkey and Israel since 2003 concerning the export of
water from Turkey’s Manavgat River dam to Israel. It is understood that the contract covers 50million
m 3 of water per annum and will last 20 years. The water will either be transferred by tanker or via a
pipeline. It is understood that Turkey will take sole responsibility for the marketing and sale of
Manavgat water in Israel, with Israel taking responsibility for transportation. The Manavgat Estuary is
325 nautical miles from Ashkelon, the nearest Israeli port.
The dam cost Turkey US$160 million to construct and is capable of supplying potable water at 5.8m 3
per second. A US$150 million pumping station and treatment plant entered service in 1999. Turkey
is seeking to export water from the dam to a number of markets including Greek Islands in the
Aegean, Cyprus and other (as yet unnamed) Middle Eastern countries and hopes to eventually sell
0.5 million m 3 of water per day, or 182.5 million m 3 of water per annum. No negotiations between
Turkey and countries other than Israel have been disclosed to date.
According to the Israeli Government (GWR, October 2003), the cost of water exported to Turkey
would break down as follows:
Cost of water in Turkey US$0.20 per m 3
Cost of piping water to Israel US$0.70 per m 3
Cost of transfer to local network US$0.10 per m 3
Total cost US$1.00 per m 3
Source:
Friends of the Earth Middle East (2005) Crossing the Jordan: Concept Document to Rehabilitate, Promote Prosperity and help
Bring Peace to the Lower Jordan River Valley. Aman, Jordan & Bethleham & Tel Aviv, Israel
120 Pinsent Masons Water Yearbook 2005 – 2006