IDE company hired by the government to estimate the cost of works on elimination of shortcomings in the new desalination plant in Ashdod, came to the conclusion that the repair costs will be significantly higher than previously thought, according to «Globes».
Until now, the cost of repairs, which will bring the plant to the planned level of productivity, was estimated at 160-190 million shekels. However, the evaluation IDE, the state will have to invest in the repair of 250-300 million shekels.
New desalination plant in Ashdod was opened in 2015. At the moment he is working more than 85% of design capacity and frequent stops because of significant shortcomings in the project.
State water company «Mekorot» has filed a lawsuit against the building contractors (the company «Minrav» and the Spanish company Sadyt) demanding compensation.
Recall that in early may of 2017, the state company «Mekorot Jesum», a member of the national water company, Mekorot, has issued a warning about bankruptcy.
The Board of Directors of the company «Mekorot» was forced to approve the writing off of losses of investments in the amount of 366 million shekels.
The reason rare for government agencies the situation with a potential bankruptcy – the poor state of the newly built Ashdod, the country’s largest desalination plant.
A one-year delay in the commissioning of the plant and flaws, not allowing it to reach its full production capacity, has led to a situation in which «Mekorot Jesum» can not repay debts in the amount of 1.2 billion shekels.