IDE Technologies Ltd., jointly owned by Delek Group Ltd. (DLEKG) and Israel Chemicals Ltd. (ICL), said contracts it signed to design the largest seawater desalination plant in the U.S. and provide maintenance are valued at $650 million.
Construction on the reverse osmosis Poseidon project to supply as much as 54 million gallons of fresh drinking water a day by 2016 is set to begin this month near the Encina power station north of San Diego in Carlsbad, California.
IDE said the design and equipment supply contract with Kiewit Shea Desalination is for $150 million while a 30-year operating and maintenence contract with Poseidon Resources Corp., based in Stamford, Connecticut, is worth $500 million. IDE has worked on about 400 such projects globally, including the Ashkelon and Hadera desalination plants in Israel.
The Poseidon desalination and pipeline project is a $922 million venture structured as a public-private partnership that includes $755 million in tax-exempt bonds sold last month, $167 million in private equity investment and a regional water purchase agreement.
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