BlueGen, owned by infrastructure and energy investment company Generation Capital (TASE: GNRS) has won the tender to expand the Eilat desalination plant. The Sabha D installation in Eilat will increase the water desalination supply capacity from its current 18 million cubic meters of water annually to 38 million cubic meters. Water supply is one of the main constraints on the development of Eilat, and this significant expansion will open the door to the expansion of the Red Sea resort.

Sabha is the only desalination plant that currently supplies water to Eilat, and enables consumption for both the city’s residents and tourists, as well as agriculture north of Eilat in the Paran region. Today, the current desalination facility has reached its limit, creating an obstacle to the further enlargement of Eilat. The new desalination plant will the city to expand its size, its tourism and the agriculture in the surrounding region. The cost of planning and implementing the project was estimated at NIS 425 million in the tender.

After winning the tender, BlueGen CEO Leehu Hacohen said, “The knowhow and experience that BlueGen has gained will allow us to provide a significant service and improve and strengthen the water sector in Israel, especially following one of the most severe droughts we have known. We are proud and happy at the belief that Mekorot has placed in us.”

Published by Globes, Israel business news – en.globes.co.il – on July 29, 2025.

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