US: Israel should re-think China's participation in desalination plant

"The Americans have been delivering messages gently and politely but obviously they want us to re-examine the participation of the Chinese company in the tender,” an Israeli official told Channel 13.

By JERUSALEM POST STAFF, HERB KEINON
Brine water flows into the Mediterranean Sea after passing through a desalination plant in the coastal city of Hadera (photo credit: NIR ELIAS / REUTERS)
Brine water flows into the Mediterranean Sea after passing through a desalination plant in the coastal city of Hadera
(photo credit: NIR ELIAS / REUTERS)
The US government sent a warning to Israel regarding a Chinese company bidding to construct the world’s largest desalination plant, which will be in Kibbutz Palmachim and cost more than NIS 5 b., Channel 13 reported, citing Israeli officials. The Trump administration has looked into the company and the Finance Ministry is expected to announce its findings on May 24.
"The Americans have been delivering messages gently and politely but obviously they want us to re-examine the participation of the Chinese company in the tender,” an Israeli official told Channel 13.
The plant, called “Sorek 2” is expected to be able to produce 2000 m. cubic feet of desalinated water annually and supply 25% of Israel’s water consumption, according to Channel 13.
Top Israeli officials told Channel 13 that US officials, including US Ambassador to Israel David Friedman, contacted the Foreign Ministry and the Prime Minister’s Office to ask questions regarding the participation of the Israeli Hutchinson Company, an affiliate of the Chinese Hutchinson Company based in Hong Kong.
In October 2019, after three years of deliberations and intensive pressure from Washington concerned about the scope of Chinese investments in Israel, Jerusalem announced it will establish an advisory committee to vet foreign investments.
The decision to establish the new body came at a meeting of the security cabinet. The advisory committee, according to a statement issued by the Prime Minister’s Office, will be headed by the Finance Ministry and will “examine national security aspects in the process of approving foreign investments.”
"The selection of the winner is to be established and the operation of the desalination plant ‘Sorek 2’ is in the midst of a tender procedure in accordance with a government decision on the matter,” the Foreign Ministry said, according to Channel 13. “The committee acted and coordinated with all relevant entities. The decision on the identity of the companies selected to participate in the tender was made in 2018, more than a year before the establishment of the Advisory Committee on National Security Aspects in Foreign Investment. Discussions of the Advisory Committee are therefore private, so we are not allowed to address the issues under discussion or are not discussed within it.”
 "We will not address specific projects, but as with all our allies and friends in the world, we also have a dialogue with Israel about the best way to examine foreign investment and economic transactions that may have an impact on national security,” a senior US embassy official stated in response, according to Channel 13.


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