US embassy cable - 05TELAVIV5458

UNCLAS SECTION 01 OF 02 TEL AVIV 005458 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR NEA/IPA, NEA/RA AND OES/PCI 
 
E.O. 12958: N/A 
TAGS: SENV, PREL, KPAL, KWBG, IS, ENVIRONMENT, SCIENCE AND TECHNOLOGY 
SUBJECT: ASHKELON DESALINATION PLANT OPEN FOR BUSINESS 
 
Sensitive but unclassified, please handle accordingly. 
 
1. (U) Summary: The Ashkelon desalination plant began 
providing 
potable water for the Israeli national water grid in 
mid-August, 
according to Gustavo Kronenberg, general manager of the 
private 
consortium that built and is operating the plant.  By the end 
of this year, Ashkelon, the largest reverse osmosis 
desalination 
plant in the world, will provide about 100 million cubic 
meters (MCM) annually, approximately 15 percent of Israeli 
household 
consumption.  The cost of the desalinated water is about US 
$0.53 
per cubic meter.  The plant is a potential source of 
supplemental 
water supplies for Gaza.  End summary. 
 
2. (U) TDY Deptoff met August 29 at the Ashkelon desalination 
plant 
with Gustavo Kronenberg, general manager of VID Desalination 
Company 
Ltd.  VID is a consortium of three companies: IDE 
Technologies, Veolia 
Water, and Elran Infrastructures.  VID will operate the 
Ashkelon 
facility for 25 years, including the construction period, 
before turning 
it over to the GOI.  Kronenberg said that Ashkelon consists 
of two plants, 
the North and the South, each with a full production capacity 
of 60 million 
cubic meters (MCM) per year.  At the time of the visit, the 
North plant 
was producing 7,164 cubic meters per hour, which, if 
sustained, would be 
a yearly rate of almost 63 MCM.  Kronenberg said that the 
South plant 
is scheduled to become operational in November or December. 
According 
to Kronenberg, the contract with the GOI is for 100 MCM per 
year, at a 
price of about US $0.53 per cubic meter, but production could 
be expanded 
to 120 MCM per year.  He added that the GOI would have to 
renegotiate 
the price for any water over the contracted volume with VID. 
 
3. (SBU) When asked about press reports that adding Ashkelon 
water to the 
more saline national grid water would cause de-scaling of the 
distribution 
pipes, resulting in "red water" being delivered to consumers, 
Kronenberg 
said the issue was more political than scientific.  He 
explained that 
any discoloration of the water would be short-lived, "a few 
hours at most", 
a common occurrence when pipes are flushed, and not a health 
concern. 
Kronenberg said that Mekorot, the Israeli National Water 
Company, raised 
the issue as a way of publicly demonstrating that they had 
some control over 
the Ashkelon project.  According to Kronenberg, once Ashkelon 
was ready 
to start producing water, Mekorot insisted they needed four 
days to study 
the red-water issue.  Kronenberg agreed to pump the 
desalinated water into 
a holding reservoir for ground-water recharge for four days, 
after which 
Mekorot agreed to accept the water.  (Note: There have been 
no press 
reports of "red water" since Mekorot began mixing the 
Ashkelon water 
with the national grid water two weeks ago. End note). 
 
4. (SBU) A formal opening ceremony for the Ashkelon plant is 
scheduled for 
September 28.  Kronenberg said he expects Israeli Prime 
Minister Sharon, 
Vice Premier Peres, acting Finance Minister Olmert, and 
Infrastructure 
Minister Ben-Eleizer to attend the ceremony.  Invitations 
have also been 
extended to American Embassy personnel. 
 
5. (SBU) In past conversations with Emboffs, Kronenberg has 
noted that the 
Ashkelon plant could be built out to its full 120 MCM 
capacity to provide 
supplemental water supplies for Gaza, if there were interest. 
 
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