Israel taps local firm IDE in desalination tender over Hong Kong rival

Israel on Tuesday chose local company IDE Technologies over a Chinese-linked rival to build the country's largest desalination plant to help battle water shortages that could arise from climate change. The project, to be financed by a consortium of banks including Bank Leumi, Germany's KfW, and the European Investment Bank, will increase Israel's desalination capacity by 35% and lower water costs, the government said in a statement.

IDE had competed for the tender against Hutchison Water, whose main investor is Hong Kong's CK Hutchison Holdings. Israel's main ally, the United States, which is uneasy with Chinese involvement in Israeli critical infrastructure, had expressed its misgivings about Hutchison's bid.