Israel has rejected a bid by a Hong Kong-based conglomerate to build the country’s largest desalination plant, buckling to US pressure to curtail Chinese investments in sensitive areas of the economy, reported the Financial Times.
The $1.5 billion Sorek 2 project, which could supply more than a third of Israel’s water, will be built by a consortium led by local company IDE Technologies and financed by Israel’s Bank Leumi and two European lenders, the government said on Tuesday, edging out a bid from CK Hutchison Holdings, controlled by Hong Kong billionaire Li Ka-shing.
The decision came days after Mike Pompeo, US secretary of state, made Washington’s opposition to any Chinese involvement in the plant’s construction a key issue during a lightning trip to Israel this month, two Israeli officials said.
The Trump administration has pressured Israel to block Chinese investment into so-called dual-use start-ups after Israel allowed a Shanghai-based company to operate a port at Haifa and telecoms equipment groups Huawei and ZTE expressed interest in expanding in the country.
You must log in to post a comment.