China loses bid to build $1.5 billion desalination plant in Israel
Under pressure from the US administration, Israel has chosen a local company over a Chinese one to construct and operate its massive new sewage water desalination plant.
Israeli authorities announced on May 26 that local company IDE technologies was chosen to construct the Sorek 2 sewage desalination plant in the south of the country. Israeli Hutchison Company, an affiliate of the Chinese Hutchison, was considered until recently the frontrunner for the tender, but American pressure against its candidacy evidently worked.
Sorek 2 is expected to be one of the world's largest desalination plants, increasing Israel’s desalinated water production by 35% and lowering water costs. Five other desalination plants already operate in Israel, but Sorek 2 will be the biggest. A 2018 tender invited companies to bid on its planning, construction and operation for a period of 25 years.
Israel’s Energy Minister Yuval Steinits said May 26, “The bid by the Israeli firm was better by a significant margin, the price was cheaper by a significant margin than that of the other bidders — including the Chinese, who did indeed reach the final stage.’’
Still, the decision to pick the Israeli contender was reportedly also influenced by American pressure against Chinese involvement. The current and previous US administrations had pressured Israel over the past few years to limit its commercial relations with China in sensitive areas such as cyber technologies and infrastructure. The United States was disappointed over Chinese involvement in construction projects in the ports of Haifa and Ashdod. Two years ago, Israel agreed to an American demand to establish a special committee for examining and controlling foreign investments in the country.
