Amid US pressure, Israel Cancels $1.5 Billion Deal With China

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That’s what friends do.

Amid US pressure, Israel taps local firm over China for $1.5b desalination plant

Officials cite huge expected savings in water costs and significantly better tender bid as reason IDE Technologies was awarded Sorek B project, largest of its kind worldwide

By AFP and TOI staff, 26 May 2020:

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The Finance Ministry on Tuesday named a local company as the winning bidder for a $1.5 billion desalination plant contract, beating out Chinese competition amid reports of pressure from Washington.

IDE Technologies will build the Sorek 2 plant south of Tel Aviv, which by 2023 should be able to produce 200 million cubic meters a year of desalinated water from the Mediterranean, a statement from the finance and energy ministries said.

The Israeli company was chosen over Hutchison Water — part of the Hong Kong-based CK Hutchison Group — less than two weeks after US Secretary of State Mike Pompeo made a lightning visit to Israel during which he discussed Chinese investments.

The new plant will be the largest of its type in the world and increase Israel’s desalination capacity by 35 percent, saving the country money on water, the statement said.

It said the plant would save the Israeli government NIS 3.3 billion ($900 million) during its lifetime.

Finance Minister Israel Katz said the plant will “significantly increase the state’s water supply and save huge sums” in water costs.

Israel has boosted cooperation with China in high-tech and other sectors, but its key ally the United States has urged it to limit Chinese investment in strategic sectors of the economy.

Energy Minister Yuval Steinitz played down Israeli considerations of Washington’s concerns in the decision not to award the tender to Hutchison.

Steinitz told the Kan public broadcaster he was at the meeting earlier this month between Pompeo and Prime Minister Benjamin Netanyahu and “it didn’t seem to me that this plant was at the forefront of American interests.”

“The proposal by the Israeli company was significantly better than all the competitors, including the Chinese,” Steinitz said.
US Secretary of State Mike Pompeo, left, with Prime Minister Benjamin Netanyahu at his Jerusalem residence, May 13, 2020 (Kobi Gideon/PMO)

Newly appointed Water Resources Minister Ze’ev Elkin said the desalination plant would give Israel “confidence in the strength of our water resources,” even should a series of drought years occur.

In a May 13 interview with public television, Pompeo voiced concern over Beijing gaining “access to Israeli infrastructure” that could “put Israeli citizens at risk,” as well as endangering the “capacity for America to work alongside Israel on important projects.”

A spokesperson for the Finance Ministry would not comment on whether US concerns were a factor in the selection of IDE over Hutchison.

Hutchison Water had partnered with IDE to build and operate the first Sorek desalination plant, which has been providing potable water since 2013.

In 2019, IDE sold its shares in the first Sorek plant.

China and Israel have stepped up trade and business ties in recent years and launched free trade talks, but senior security officials have sounded alarm bells over Chinese involvement in infrastructure projects, warning they are a security risk and could jeopardize ties with the US.

Beijing and Washington are at odds as US President Donald Trump has in recent weeks lambasted China for what he says is Beijing’s role in allowing the coronavirus to spread.

US officials had questioned the China-tied company’s offer and expressed concerns over the possibility it could win the tender, Axios reported before Pompeo’s visit.

The report said officials in the Trump administration, including US Ambassador to Israel David Friedman, have raised their concerns with the Prime Minister’s Office and the Foreign Ministry.

Construction on the $1.5 billion plant is set to begin this year and when completed Israel, already a world leader in desalination, will be drawing fully 85 percent of its potable water from the sea.

The plant is planned for Nahal Sorek, near the Palmachim air base and a nuclear research facility in the area.

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DemocracyRules
DemocracyRules
3 years ago

Global Pamela Geller searches, last 7 days

comment image

Achmed Mohandjob
Achmed Mohandjob
3 years ago
Reply to  DemocracyRules

How you do dat?

I am duly impressed.

DemocracyRules
DemocracyRules
3 years ago
Achmed Mohandjob
Achmed Mohandjob
3 years ago
Reply to  DemocracyRules

I still draw my charts by hand. That’s what I call new fangled gew-gaws. Mighty purtty.

DemocracyRules
DemocracyRules
3 years ago

So when you post comments, Russians read them. Is good, no?

Achmed Mohandjob
Achmed Mohandjob
3 years ago
Reply to  DemocracyRules

I simply hope that moslems (the vilest of ALL creatures) have access to them.

Alley-hoo-ackburr.

MuhamMUDTheFakeProphet
MuhamMUDTheFakeProphet
3 years ago
Reply to  DemocracyRules

I’m surprised there’s any searches for Ms. Geller in muslum N. Africa, I’d figure her website would be banned at the national level in those hellholes.

felix1999
felix1999
3 years ago

Trump is doing you a favor. I don’t know why you don’t see that.
You shouldn’t want China involved in that.

old white guy
old white guy
3 years ago

Stay away from entanglement with China. Canada is being turned into a Chinese satellite. I hope America is paying attention.

Dorrie_
Dorrie_
3 years ago
Reply to  old white guy

Even if America IS, it’s too late! Trump has turned American into a UNION with corrupt Canada and Drug-cartel controlled Mexico. A UNION, not unlike the EU!! And Jared Kushner pressured Congress to pass the USMCA. Pelosi did so with GLEE, packing it with all kinds of America-killing laws. Then Trump signed it with a flourish, not reading it because he was kept too busy fighting bogus impeachments. America’s SOVEREIGNTY has been destroyed by this bill! Go online and read it for yourself! Our goose has been thoroughly COOKED.

old white guy
old white guy
3 years ago
Reply to  Dorrie_

Did you miss the trade agreement done with Canada and Mexico before Trump was ever involved in politics. I agree about the goose but Trump did not cook it.

Dorrie_
Dorrie_
3 years ago
Reply to  old white guy

That’s the one I was talking about, dear heart! Go read it! Indeed he did! He signed the USMCA trade agreement, which destroyed our sovereignty! Wake the heck up!!

If Trump didn’t sign (cook) that hideous trade agreement with Canada & Mexico, pray tell who did?!

spfoam1
spfoam1
3 years ago

“That’s what friends do.”
Yes.

China is a hand fed dragon, grown to make it so threatening that we would have to fight it. Stop feeding it.

spfoam1
spfoam1
3 years ago

“That’s what friends do.”
Yes.

China is a hand fed dragon, grown to make it so threatening that we would have to fight it. Stop feeding it.

John Acord
John Acord
3 years ago

The ChiComs declared war on the US and the rest of the world with an attack that has already killed 100,000 Americans and nearly destroyed our economy. We are at war and just don’t know it or refuse to recognize it. Israel like all US allies needs to be aware that the ChiComs will soon not be able to deliver on any of their commitments as they will be annihilated.

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