Seawater desalination under private concessions
Israel's Water Authority contracted private operators to build and run large seawater desalination plants under long-term concessions, and by 2022 the five largest held concessions for about 596 million cubic metres a year and supplied 33 percent of the country's fresh water, with the state buying 540 million cubic metres from them that year for about NIS 1.5 billion.
33 % of fresh water, share of fresh water supplied from desalination, 2022. 596.4 million cubic metres a year, production capacity in the concessions of the five largest plants, 2022. State Comptroller of Israel, Regulation and Oversight of Seawater Desalination Facilities, November 2024, retrieved 2026-10-01.
The move, and what it needed
The state kept the planning, the water purchase and the regulation, and let private consortia finance, build and operate each plant on a long-term concession with a guaranteed buyer, so capacity arrived on a tender schedule without the capital sitting on the budget.
Preconditions
- A single national water authority and a national carrier able to take every plant's output
- A coastline next to the demand and enough grid power for reverse osmosis
- Water scarcity severe and lasting enough to sustain the political case across governments
Where else it has been used: Gulf states and Australia built similar plants; where demand fell after a drought ended, as in several Australian cities, plants were mothballed and the fixed concession payments became the controversy.
Limits: The source is an audit, and most of it is criticism: it finds that the Water Authority never completed the national desalination master plan a 2010 government resolution required, that the agreed penalties for poor water quality are too low to enforce anything, that 14 seawater contamination incidents halted production between 2007 and 2023, that three of the largest plants sit near one river mouth, and that no serious preparation had begun for the Palmachim concession expiring in 2029. A third of fresh water is the 2022 national share; desalination's share of drinking water is higher, but the audit does not state it. The started year is the first year the audit reports plants in operation; the first plant opened earlier. Capacity is a contractual figure, not output.