Shafir and Generation Capital will pay NIS 909 million for the desalination plant in Ashdod

Shafir and Generation Capital will pay NIS 909 million for the desalination plant in Ashdod
Shafir and Generation Capital will pay NIS 909 million for the desalination plant in Ashdod

The GES group, which consists of the Shapir company, which is controlled by the Shapira family and Generation Capital, is purchasing the desalination plant in Ashdod from Mekorot. The group will pay Mekorot NIS 909 million – a much higher amount than the initial estimates at Mekorot for the facility. This is a desalination plant that desalinates about 100 million cubic meters a year, about one-sixth of the total amount of water currently desalinated in Israel. Now that the facility will be transferred to private hands, all five major desalination facilities in Israel will be in private hands.

The Mekorot tender for the desalination plant was initially approached by five companies, but only GES and IDE remained in the race for the more advanced stage.

Mordechai Mordechai, Chairman of Mekorot / Photo: Tamar Mitzpi

An announcement to the stock exchange published by Mekorot states that the decision to win was made by the special tenders committee for the company and Mekorot Development and Entrepreneurship Ltd. It is also stated that about a third of the consideration will be paid to the state “in accordance with the parties’ agreements.

A statement from the Accountant General’s Office said that “the sale process was carried out as part of the organizational reform approved by the government about two years ago, and is expected to strengthen the company’s capital structure. When the person who led the decision-making process on behalf of Mekorot on the sale and negotiations with the financial entities is the outgoing chairman of the Mekorot board of directors, Mordechai Mordechai. “

The chairman of the board of Mekorot, Mordechai Mordechai, said: “For me, this is a closing of a circle and a kind of farewell gift that I leave to Mekorot, when it is in the right place, more accurate in its activities and available to promote projects to develop the water sector in Israel. When I arrived at the company, the fate of the facility was not clear, and finding compromises between the funding bodies, the developers, the construction contractor and government officials, such as those that eventually led to the successful sale of the facility, posed a real challenge. The proceeds from the sale will contribute to Mekorot’s financial strength and will be reinvested in the development of the water sector. “


Shafir Generation Capital pay NIS million desalination plant Ashdod

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