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Wednesday, 07 December 2011 13:51

EU provides € 120m to build Israeli seawater desalination plant

The European Investment Bank, the EU’s long-term financing institution, has today announced the signing of a €120 million finance contract for the design and construction of a seawater desalination plant using reverse osmosis technology in Ashdod, Israel.

The contract has been signed with Bank Hapoalim, which will on-lend the funds to Ashdod Desalination Ltd, a fully owned subsidiary of Mekorot Development and Enterprise Ltd.

The project will serve to substantially increase the availability of water resources in the water-scarce region via the construction of a plant with a production capacity of 100 million m3 per year, enhancing the sustainability of Israel’s water sector.

The desalinated water will be blended with fresh potable water from the national water carrier system and improve the quality of water delivered to consumers by reducing hardness and concentrations of salts, nitrates and boron. It will ultimately result in markedly reduced water abstraction and the prevention of saline water intrusion into aquifers.

The financing of the project forms part of the EIB’s support for improving wastewater treatment facilities and drinking water supply in the regions. In the Mediterranean region as a whole, it has devoted more than €1.05 billion to the water sector.

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