Privatization of Water Infrastructure

One thing I have to say about the Israeli Finance Ministry: It is consistent and persistent. About twenty years ago they decided to privatize national infrastructures and after repeated failures, they have decided on a strategy and they are following through. In electricity, they have learned that the Israeli Electric Monopoly is invencible, and its strong union can paralyse the country at will. So they are regulating the monopoly to death, cutting off its finance sources, and forbidding any further addition to its facilities. All additional electricity will be generated by private plants burning Egyptian gas. They are allowed to sell electricity and compete with IEC.

In water, they have learned that the Mekorot state-owned monopoly is too strong and cannot be dismantled. So they apply the same strategy as in electricity, they persistently micro-sabotage Mekorot, and have created alternative and competing water sources - desalination - which is 100% in private hands. Mekorot has been left out of this market, but has been fighting ferociously. Its last effort is focused on having at least one water factory - the Ashkelon plant. After years of pressure, the Finance Ministry agreed on the condition that they sell water at the same price as private companies. Mekorot agreed then discovered that it cannot do it. They went ahead anyway in the well tried expectation that after building something without permit, it will be declared "kosher" retroactively. Contracts were signed with foreign companies and banks, and tractors are on the site. Last week the Finance Ministry suspended the foreign contracts because of technical irregularities in the bidding process. Mekorot is indignant, lamenting the country's "lack of seriousness". If anything, as said at the beginning, those Finance wunderkindern are persistent. Illustration: "Never give up. Fight!"