IDE buys out Hadera operator partner

Desalination developer, IDE, is buying out its partner in the Hadera desalination plant operating company in a NIS 80 million (US$ 20 million) deal.

Israel-based IDE is buying out the stake in Omis Water held by Israeli real estate company, Shikun u’Binui Holdings (S&B). Under the sale agreement, the purchase would include “further annual compensation based on the volume of desalination in the years left on the license,” according to Israeli business site, Globes.

The compensation will be split in two a fixed component and a variable component conditional on the volume of water supplied to the state.

The sale remains conditional on the approval of other agents and does not include S&B’s rights to 50% of the consortium, H2ID, which holds the contract for the facility reported Globes. IDE is also a partner in H2ID.

The contract for Hadera’s operations ends in 2032. The plant was built in 2010 as part of a policy to diversify Israel’s water sources.