1. From drought and water shortage to surplus: California and Israel Story
Gilad Cohen | March 2017

2. March 2016
Source: US Drought Monitor - California focused on surface water sources & snowpack

3. August 2016
Source: US Drought Monitor - California focused on surface water sources & snowpack

4. March 2017
Source: US Drought Monitor - California focused on surface water sources & snowpack

5. If you want it to rain … Get the desal guy to move over …
Lesson Learned
If you want it to rain … Get the desal guy to move over …

6. IDE Technologies
Technology leaders in desalination, industrial water treatment and waste water reuse
Project Delivery models: P3, EPC, D/B, etc.
30 Years of operation and project delivery in North America
Designed and operate the largest desalination facility in the Western Hemisphere (Carlsbad Desalination Plant)
Headquartered in Israel, fully owned subsidiaries in USA, Australia, China, India, and Chile

7. IDE Technologies – Market and Peer Recognition
GWI Award
2006
Desalination plant of the year (Ashkelon, Israel)
GWI Award
2009
Thermal Desalination Plant of the year
(Reliance Jamnagar Refinery, India)
GWI Award
2011
Desalination company of the year
Israel Cleantech Expo Award
2011
Company of the year
GWI Award
2012
Water Deal of the Year
(Sorek, Israel)
GWI Award
2014
Distinction Award
Desalination Company of the Year
MIT
2015
Sorek - Top 10 Breakthrough Technologies
GWI Award
2016
Desalination Plant of the Year
(Carlsbad, US)
GWI Award
2013
Desalination Deal of the Year
(Carlsbad, US)
GWI Award
2014
Desalination Plant of the Year
(Sorek, Israel)

8. Snapshot of Israel and its Water
6560 Square miles
6 hours drive north to south
2 - 3 hours west to east
with desert conditions in the south, and snow-capped mountains in the north. 

9. Snapshot of Israel and its Water
60% of Israel is desert – the rest is semi-arid
Since 1948 the population has grown tenfold
Annual rainfall has dropped by more than half
Despite the above, in October 2013 ……
The Israeli Government declared water independence from weather

10. Making the Dream a Reality
“If our science and technology people will devote their best research and receive for this purpose all the assistance from the state, it will not be beyond them to find a cheap process for desalinating seawater. Irrigating the desert with purified seawater might seem to many today a delusion, but Israel should be the last state to be afraid of ‘delusions’ that could change the primal order by force of the power of vision, science and pioneering capability.”
Prime Minister David Ben Gurion, 1956
“If we could produce fresh water from salt water at a low cost, that would indeed be a great service humanity, and would dwarf an other scientific accomplishment”
President John F. Kennedy, 1962

11. The Plan: 0 to 100 in just over a Decade
The water resources of the State are public property; they are subject to the control of the State and are destined for the requirements of its inhabitants and for development of the country
Conservation Campaign – “Israel is Drying Up”
Promoting installation of water conservation technologies and leakage control
Water pricing - rates are categorized by the different uses: domestic, consumption and services, industry and agriculture, differing from one another
Water reuse – for agriculture and potable use
Desalination – 600M m3 in 2015

12. 85% Recycled Water: Number of Quality Levels

13. Water supply sources in National System [million m3/ year]
2016
Forecast

14. Mega –Sized Seawater Desalination in PPP Model
Confidential
Mega –Sized Seawater Desalination in PPP Model
1999 Government decision to build large scale seawater desalination facilities
Supplying water from the Sea of Galilee within 7 days
Supplying desalinated water within 3 hours
Hadera
(127 Mm3/year)
P3 - BOT
P3 - BOO
Palmachim
(45 Mm3/year)
P3 - BOT
Sorek
(150 Mm3/year)
Ashdod
(100 Mm3/year)
P3 - BOT
Ashkelon
(118 Mm3/year) 14

15. Behind the Scenes … Changing the Paradigm
New water sources are not the devil
Reuse including D/I Potable
Seawater Desalination
There is a cost for not having water
New water is not necessarily “expensive”
New water production costs money … but reaching grid parity
Recognizing local government limitation of capacity and capabilities:
Forming partnership with the private sector
Open up for new business models: DB, DBO, PPP
Open up for technology advancements …

16. What is a Public-Private Partnership (PPP)
A funding model for a public infrastructure project – various models including DB, O&M, DBFO, BOO, BOOT, and more 
Public partner - represented by the government at local, state and/or national level.
Private partner - privately-owned business, public corporation or consortium of businesses with a specific area of expertise
Water project - the Developer designs, finances, constructs, maintains/supervises and sells the water to the water company/off-taker over the project term. The Off-Taker purchases the water over the project term under a Take-or-Pay commitment
An Agreement defines the relations, the rights and the obligations of the parties.
The risk allocation between the parties should allow each party to handle risks that it can address better
The Off-Taker should be a bankable entity and the concession agreements should be binding and well-defined to enable the financing of the project

17. IDE Mega Size Plants In Israel: PPP Model
Confidential
12/10/ :57
IDE Mega Size Plants In Israel: PPP Model
Ashkelon,
Israel
Hadera,
Israel
Sorek,
Israel
BOT-25 year
Operation began in 2005
Capacity of 118M m3/year
GWI Award – ‘Desalination Plant of the Year’ in 2006
BOT- 25 year
Operation began in 2009
Capacity of 127M m3/year
Euromoney Project Finance ‘Deal of the Year Award’ in 2007
BOT-25 year
Operation began 2013
Capacity of 150M m3/year
World’s largest SWRO plant
Desalination Plant of the year 17 17

18. 5 Things the State of California wants you to Know
Water is the essence of life for California
California’s complex water system is in crisis
A diverse portfolio approach is required
Solutions require integration, alignment, and investment
We all have a role to play in securing our future
Source: State Water Plan 2016 update

19. Diverse Landscape of Water Rich and Water Poor Regions

20. Groundwater Health: Many Basins Remain Critically Poor 21 critically overdrafted basins and sub basins are in GSP status
Impacts which can include: seawater intrusion, land subsidence, groundwater depletion, and chronic lowering of groundwater levels

21. What If
Southern California had an uninterruptable and sustainable supply of water regardless of rainfall levels?
Managers of existing water resources knew that their current demand levels were not subject to supply interruption?
Additional water supplies could be brought on line in a timely fashion?
Local and regional elected officials and economic developers could assure new “industrial” prospects that, if they locate in this region, will have water?

22. A Balanced Water Portfolio: A Goal for Southern California?
Less reliance on imported water, More reliance on independent local supply

23. Reuse and Desalination: The necessary evil? Or the new source of water?
The Benefits are clear:
Dependable source (quantity and quality)
Enables growth
Enables proliferation in arid areas
Predefined known cost
But…
There are also challenges:
Comes at a cost
Requires social and environmental responsibility

24. The Environmental and Social Impact of “Natural” vs. New Water Sources
Environmental Costs
Land subsidence
Artificial lakes
Disturbance of natural habitats
Social Costs
Source of water that is not secure
 San Joaquin Valley, California

25. The Environmental and Social Impact of “Natural” vs
The Environmental and Social Impact of “Natural” vs. New Water Sources( Cont.)
Environmental benefits
Avoid building more dams/canals
Reduce water transportation effects (energy)
Reduce irrigation by high chloride/high nitrate water
Social benefits
Secure source of water
Enable growth and ignite economy boost
Reduce need to purchase bottled water/water softeners
It is extremely subjective to try and quantify/monetize environmental and social costs and benefits

26. Carlsbad, California, USA: Project Success
An award-winning, milestone plant for the desalination industry
Overview
Capacity: 54 MGD (204,412 m3/day)
Technology:  SWRO
Project Type:  EPS and O&M – 30 years
Footprint: 6 acres (24,000 m²)
Off-Taker: San Diego County Water Authority (SDCWA)
Project Developer: Poseidon Water
Operational Date: December 2015

29. Is the Cost really Higher than “Natural Sources”
Membrane Desalination Power Usage put in Perspective
American Membrane Technology Association
FACT No 1
FACT No 2
The fuel required to fly a jumbo jet at cruising altitude will be
adequate to provide seawater RO desalinated water to over 300,000homes in the United States.
the energy requirement for supplying desalinated water to a house in
-the US will be less than an old refrigerator, but the same as a
newer,

31. Santa Barbara Project Success: Reducing Cost through Advanced Engineering
Retrofit of Existing Plant (1990 vintage)
Customer wanted a scalable facility = IDE’s Modular Concept
Capacity: 2.8 MGD (3125 AFY)
Potential of expansion to 6.7 MGD (7500 AFY)
Technology:  SWRO
Project Type:  DBO (EPC and O&M – 5 years)
Off-Taker: City of Santa Barbara
Commission Date: May 2017
Accelerated Project Delivery
Simultaneous site preparation and module construction

32. Santa Barbara - From 3D Model to Reality…

33. Santa Barbara Pre-Assembly Works

34. Santa Barbara Packing and Transportation

35. Santa Barbara Site Preparation in Parallel to Pre-Assembly of the Units

36. Santa Barbara: Under Construction (08-2016)

37. So what is the “Secret Sauce for Success”?
Recognition of the Problem and a Sense of Urgency
Drought remains the issue
Average rainfall does not solve the problem
Leadership and Policy Advocacy
National, State and Local Level
Adoption of Regional Approach to Water Planning
e.g. San Diego; Santa Barbara
Partnering with the Private Sector:
Ample Capital is available through PPP model
Trust factor and risk mitigation
Technological advancement to reduce cost and environmental impact
All Hands on Deck – Partnering for success

38. Together … in Partnership… We Can Do More …
17 proposed plants along the CA coast (= 500 MGD capacity)
Reuse around the World and US
Percentage Recycled
Country
85%
Israel
35%
Singapore
10%
Spain
6.5%
USA
5.5%
Saudi Arabia
0.9%
Chile
0.6%
Australia

39. Gilad Cohen