Ministry of National Infrastructures

5. The Israel Electric Corporation

The Electricity Commissioner is responsible to the Minister to supervise, approve and plan for the current and future needs of the State and its citizens so that demand will always be met. He is also responsible for implementing the Minister's policies in the field of electric power.

The Israel Electric Corporation (IEC) incorporated in 1923 is a Public Utility, generating and supplying electricity throughout the State of Israel. The IEC directly serves a population of about 5.5 million in an area of approximately 21,500 sq.km. For the time being, the IEC also provides electricity to Judea, Samaria and the Gaza Strip with a total population of ca 1.7 million. The electric system is isolated from neighbouring systems and had a peak load of 6,000 MW in January 1996 with a total installed capacity of 7700 MW as of today. Coal fired units comprise about 50% of the system's installed capacity, while the share of oil fired units and gas turbines (using diesel oil) is 29% and 21% respectively. The main transmission voltage is 161 kV, while the first stage of a 400 kV transmission voltage grid has been operational since 1990 and is planned to be superimposed on the 161 kV network as the main transmission grid. The Israeli system has expanded over the last ten years at the rate of 8.8% per annum - resulting in the extensive projects and equipment purchases - exceeding those of much larger systems. The IEC is entering a new era under licence which has replaced the monopoly and is open to tenders and limited IPP production, with a newly formed Public Utility Commission. IEC is now introducing Independent Business Centres which will make supervision easier and more efficient as well as heighten competitiveness.

Electricity Commissioner
Tel: 972-2-5316118
Fax: 972-2-5374262

Israel Electric Corporation
Tel: 972-4-8548200
Fax: 972-4-8523487

6. Oil Refineries Ltd.

As the only company in Israel refining oil and supplying petroleum products, ORL plays a central role in planning and developing energy use in Israel.

The company owns and operates two refineries in Israel. The Haifa Refinery has a capacity of 180,000 bspd of crude oil. This plant produces most of the feedstock for the Haifa Bay Petrochemical Industry. In addition, the Haifa Refinery operates a power plant wich generates the steam required for the plant facilities and for neighbouring industrial plants. The Haifa Refinery also supplies all of its own electricity requirements. The Ashdod Refinery has a refining capacity of 90,000 bspd.

A new 5 year development program, to begin in early 1997, includes the following:

• Commissioning a new continuous catalytic reformer in the Haifa Refinery to produce 102 octane gasoline and thus enable the company to cope with growing demand for unleaded gasoline.
• Improvements in the Catalytic Reformer at the Ashdod Refinery.
• Improvements in the Gas Oil Hydro-treaters at both Ashdod and Haifa to allow reduction in diesel oil sulfur content.
• Expansion of the steam and electricity production capabilities at both refineries including equipment for further reduction of air and water pollution.
• A new hydro-cracker unit for vacuum gas oil to produce quality distillates.

The company is expecting deregulation and liberalization of the energy market in Israel followed by privatization of the company. For ORL, part of the privatization procedure is a joint venture with a strategic investor (a major oil company) for further involvement and development of refining, petrochemicals and downstream activities. An important part of the energy sector is the infrastructure needed to secure adequate, safe, clean and uninterrupted energy distribution to the residents of the State of Israel.

ORL devotes much thought and planning to an examination of new directions and strategic planning for the era of peace in the Middle East, in the light of expected developments in the global and European refining markets. The recession in the refining industry, the increasingly stringent environmental demands, and the implications of open borders and increased competition, pose a difficult and complex challenge for ORL.

Key Data in 1995

• Refining Throughput - approximately 12 million tons of crude oil
• Sales Turnover - $1,640 million
• Export Sales - $210 million
• Shareholding - 74% Government of Israel, 26% The Israel Corporation Ltd.

Subsidiaries

• Gadiv Petrochemical Industries Ltd. (100%) - aromatic solvents
• Carmel Olefines Ltd. (50%) - polyethylene, polypropelene
• Haifa Basic Oils Ltd. (50%) - basic lube oils

Oil Refineries Ltd.
Tel: 972-4-8722618
Fax: 972-4-8788497

7. Petroleum and Energy Infrastructures Ltd.

Petroleum & Energy Infrastructures Ltd. (Petroleum Services Ltd. until 1994) was established by the Israeli Government in 1959 and took over the concession and properties of the Iraqi Petroleum Company (IPC) . The company has enlarged the facilities which were built by IPC and constructed new facilities throughout the country.

Petroleum & Energy Infrastructures Ltd. plays a central role in the Israeli energy sector and is the dominant infrastructure company in the sector.

Currently, the company owns more than 10 terminals for storing and pumping crude oil and refined oil products. Over 700 kilometers of pipelines were laid by the company's subsidiary, Oil Products Pipeline (OPP), to link the company terminals and major consumers such as the Israel Electricity Corporation power stations, airports and the refineries. Within the current infrastructure, the company owns and operates an oil dock; loading and discharging marine facilities; tank farms and an extensive pipelines network. The company owns 50% of Pi - Gliloth Petroleum Terminals & Pipelines Ltd.

The company is preparing itself to provide the services needed for the rapid growth in distillate consumption in Israel and for the planned growth in refining capacity. It is also preparing for the challenges being offered by the geopolitical changes taking place in the region. Israel is in an ideal location to serve as a transit country for the Middle East, and the company is well positioned to take advantage of the new marketing and transport opportunities opening up in the oil sector.The company is to play a central role in future N.G. and/or L.N.G. (natural gas and/or liquefied natural gas) projects (import and/or transport from neighbouring countries). The company's role will be in building and operating the infrastructure of the gas project(s) in Israel. This infrastructure includes pipelines and storage facilities.

Petroleum & Energy Infrastructures Ltd's concern for the environment is evident in its ecological and safety investment. The company continues to implement computerized control and on-line monitoring of its facilities to ensure the safe storage and transport of its products, all of which meet international petroleum standards.

The company's expertise in both underground storage and pipeline and petroleum infrastructure enables it to offer engineering services. In 1995 a vast project was completed for underground storage of refined products in the south of Israel at the cost of approximatly $50 million. The company has also been involved in energy research projects and in the search for rare and precious metals.

Petroleum and Energy Infrastructures Ltd.
Tel: 972-3-6473520
Fax: 972-3-6480535

8. Oil Exploration in Israel

The Israel National Oil Company Ltd. is a state owned company founded in 1958. In recent, eyars, most of its financing comes from Israeli public investors and from Israeli and foreign groups participating in INOC's oil endeavors. The most important mechanism for fund mobilization (through the Israel Stock Exchange) is the INOC-Dead Sea Partnership (IDLP).

The Israel National Oil Company follows an aggressive exploration program. The company is presently operating in two lease areas, with two licenses and additional possibilities likely in at least one other region. All efforts are based on proper identification of a well defined petroleum system and a viable geological conceptual model. In future years, INOC envisages the drilling of at least nine wells in these areas. INOC intends to fully utilize all available geological and geophysical technologies in order to define and prioritize these drilling opportunities, so that only the most favorable prospects will be tested.

INOC's principal oil exploration activities in recent years have been focused on the Dead Sea region. Activities are conducted as a joint venture between a group of companies, in which INOC is the operator. Since 1990, IDLP has been the main partner in the oil ventures undertaken by INOC in the Dead Sea area. INOC operates the Ashdod lease in partnership with other entities, and conducts exploration and production activities. At this stage, INOC has undertaken an extensive work program for the holding which is primarily focused on seismic surveys of the region.

Israel National Oil Company
Tel: 972-3-5142063
Fax: 972-3-51276112

Oil and Gas Exploration
9. The National Coal Supply Corporation Ltd.

Founded in 1980 by the Government of Israel, the National Coal Supply Corporation (NCSC) is the sole importer and supplier of coal to the Israel Electric Corporation (IEC); its shares are held by the Government (74%) and IEC (26%). In recent years, NCSC sales have steadily increased. Sales turnover in 1995 totalled $355 million, a 24% leap from the previous year. This figure is expected to reach $420 million in 1996, signifying a further 18% increase.

Coal is presently unloaded in Israel at two locations:

Hadera - A dedicated coal unloading sea jetty that juts 2.5 kilometers into the sea, provides an unlimited draught facility, enabling the supply of 6 million tons of coal in massive bulk carriers of up to 190,000 tons, to the "Orot Rabin" 2,550 MW site. Ashdod - Coal is unloaded in a protected port and transferred to NCSC's dedicated coal terminal which handles 2.5 million tons, before being conveyed by rail to the 1,150 MW Ruthenberg power station in Ashkelon. Two additional 575 MW units will be completed by the year 2001.

By the year 2001, a dedicated sea jetty, similar to that at Hadera, will be erected adjacent to the Ashkelon power station. This will alow large Cape size vessels to unload directly at Ashkelon, avoiding the need to use the port of Ashdod infrastructure and the Ashdod-Ashkelon rail line.

NCSC is preparing to purchase 7.5 million metric tons of coal this year, and expects this figure to reach 8.5 million metric tons in 197. The company predicts this quantity to exceed 11 million metric tons between the years 2000-2001. As a result of this extraordinary growth in coal imports by the year 2000, the NCSC will become the largest single purchaser of steam coal in the European market.

National Coal Supply Corporation
Tel: 972-3-7513123
Fax: 972-3-7510119

10. PAMA (Oil Shales Development)

Israel possesses ample reserves of oil shale. In the last fifteen years, Israel has been involved in an intensive effort to exploit this resource. This effort, which was carried out by the Government-owned company PAMA, concentrated on two technologies - direct combustion for electricity generation and retorting for liquid fuel extraction. Of these two, direct combustion proved competitive with conventional electricity generation technologies. PAMA's facilities include a combustion pilot facility and a demonstration power plant.

The proposed IPP oil shale power station project of around 100MW involves utilization of oil shale for steam and electric power production using the technology developed at PAMA.

PAMA
Tel: 972-7-6570471
Fax: 972-7-6570482

Water and Natural Resources

1. Water and Sewage

The Water Act states that all the water resources of the state are public property, controlled by the Water Commissioner for the state. 60% of the water supplied in the country is through Mekorot and the remainder through privately owned facilities.

The National Sewage Administration is resopnsible to the Minister to ensure that effluent is correctly treated and that water sources and the seas are not polluted.

The fluctuations in the climate of our region and the scarcity of rainfall are very well known phenomena. Droughts and dry cycles are not infrequent, while the volume of our reservoirs is too small to store sufficient quantities of water to function as a supply regulator bridging dry years and dry cycles.

There is a crucial need to protect our aquifers from destruction, either by contamination or by poor management. Our aquifers, which are small in volume, are already endangered by contamination, both chemical (salinity) and biological (human and industrial waste). The reservoir which is already suffering a continuous reduction in quality is the seashore aquifer. This aquifer is endangered both by the long interface with the Mediterranean and because of the dense and intensive urban activity upon its surface.

Water can most efficiently be stored in the underground aquifers or in Lake Kinneret, which has a constant rate of evaporation, regardless of the quantities of water it absorbs, because the dimensions of its surface remain reasonably constant.

It is definite that sometime in the beginning of the coming century we shall face the crisis of lack of fresh water to meet the urban demand. There is no doubt that allocation for agriculture will have to be almost entirely eliminated. Agriculture will have to adapt itself completely to treated effluent.

The first activities are effluent reclamation and reuse for agriculture and industry, and water-saving or water-use efficiency, stressing the urgent need for effluent reclamation and reuse. Current resources will not be protected from contamination if sewage continues to seep into the aquifer. Proper treatment of effluent can provide 60% of suitable water for non-restricted irrigation.

There is more than one proposed solution for the expected water crisis, from a pipeline or sea tankers from Turkey, to icebergs tugged from the poles and/or desalination stations aong the shores of the Mediterranean. An additional option is based on the exploitation of the hydrostatic pressure obtained from the difference between seal level and the surface level of the Syrian-African rift along the Jordan Valley.

The Water Commissioner - Structure and Functions

The Water Commissioner is responsible for the overall management of the nation's water resources with the aim of ensuring a steady water supply to all Israel's residents over time for diverse consumption uses domestic, industrial and agricultural. The Water Commissioner is responsible for formulating the water policy, the planning and development of the water economy, preventing the pollution of water sources, the regulation of streams and flood prevention, utilization of overflow water, development of new water sources, utilization of waste water, development and promotion of efficient water use.

The Water Law is the basis defines and dictates to the Minister of National Infrastructures and the Water Commissioner the basis for their actions with regard to the nation's water sources. The water, as public property, is subject to the control of the State and is designated for the needs of its residents and the development of the country. According to the law's definition, "water sources" denotes springs, rivers, lakes and other flows and collections of water, whether surface or subsurface, whether natural, regulated or installed, whether the water wells up, flows or stagnates at all times or occasionally, including drainage water or sewage effluents. The Water Commissioner, who is a cabinet appointed civil servant, implements the policy of the Minister of National Infrastructure, is responsible in effect and by law for all that occurs and is being conducted in the water economy, and represents the supreme government statutory authority, which is vested with the responsibility and powers of decision concerning the nation's water economy policy.

The Hydrological Service is a department of the Water Commission that deals with establishing hydrological background data for the operation of water sources and planning. The data serve as a basis for production, licensing, including the water quality, supervision of operations required for maintaining the quality and quantity of water, and the preparation of water recharging and pumping operations. The service deals, among other things, with the initiation of hydrological research works, regular measurements of the water table, the level of the Kinneret and surface water bodies, in order to determine the water potential. The service reports to the Water Commissioner.

The Demand Management Division is charged with the implementation of the Water Law with respect to water production, supply and recharging rights. The division exercises the Water Commission's powers as regards licensing, drilling and production of water, registration of water rights, allocation of water, and reporting of production, supply and consumption. The division works together with the Planning Authority of the Agriculture Ministry and the districts concerning the verification of demands. The Division focuses on demand management. This means that the supply-oriented policy, devoid of any involvement in the manner of usage in terms of quantity and quality, is replaced by a demand- and consumption-oriented policy i.e. water resources management, based on handling of consumption and involvement in the aspect of demands, uses and the various qualities.

The Development Division is a new division in the Water Commission that is currently being set up. The Development Division will manage all the staff work related to the implementation of the water economy development programs according to the water works development programs, as derived from the nation's water needs. The division will coordinate the development program with the various government offices: the Defense Ministry, the Housing Ministry, municipalities, settlements and the Jewish Agency. The division will operate an engineering and economic control mechanism as well as supervision of water works execution by Mekorot, in the framework of the cost arrangement, and by other water suppliers.

The Planning Division is in charge of the long term strategic planning of the water economy on all its levels: a national and regional master plan, planning principal subjects, regional and local (restoring receptors, desalination, utilization and development of water sources), is in charge of the general plan of the water plants and streams. The division is responsible for the consolidation of the water economy's long-term development plans, and drawing up five-year plans in accordance with the Water Commissioner's order of preferences and policy. In addition, the division concentrates the handling of the water economy's special programs in cooperation with other bodies, such as the National Contour Plan for Water, plans for the rehabilitation of rivers, and others.

The drainage and protection against floods division concentrates the work of the headquarters in all things connected to the execution of drainage operations in regional and national rivers and the development of the country's national drainage infrastructure plan. The department, which acts through regional authorities, is responsible for planning drainage projects, ordering the execution of a master plan for drainage, supervising and controlling the implementation of projects and authorization of annual work programs of the drainage authorities.

The division for the promotion of water saving

The division's main tasks are in the policy field concerning water saving in the private and public sectors, initiating and promoting activities in the sphere of standardization and enforcement, promotion of local and national projects on the subject of efficient water usage, water shortage and expanding the up-to-date technological solutions in the aforementioned sphere.

Likewise, the division deals in the concentration and distribution of up-to-date information in the sphere of water saving for the relevant public, both in the municipal sphere (including private and public gardening) and in the agricultural and industrial sphere.

In addition, the division deals with the initiation of surveys and researches in the spheres within its professional responsibility.

The ongoing activities of the division's staff also include advice to planners, engineers and manufacturers on all the division's spheres of activity and professional training (courses, workshops and seminars, etc.).

Within the framework of the Regulations Law 1999 a decision was made to encourage projects for the restoration of streams and improvement of wells, canceling the balance fund for water fees, transferring the money that accumulated in the fund to the country's revenue and imposing an extraction levy. In addition, the apparatus was fixed for continuing support for private water extractors and transition provisions concerning the period up until the full regularization of the rights and obligations of the fund.

The unit deals with the fund's obligations and rights, the height of the extraction levies, accompanies the continuing support for private water extractors, accompanies and follows up on the granting of allowances for the encouragement of projects for the restoration of streams and the improvement of wells.

This division deals with safeguarding the water sources' quality and operating a monitoring and data collection system for the promotion of programs for the treatment and reuse of waste water through the coordination of disposal methods and preservation of the environment. The monitoring system is coordinated with the Environment Ministry and Health Ministry. Additionally, it is the responsibility of the section to initiate programs for the restoration and utilization of waste water in agriculture.

The Scientific Division adjacent to the water commission serves as a forum for professional deliberations by all branches of research of the academic and research institutes in the country. Those convene from time to time for discussions, where an opportunity is afforded scientists to participate and express their views on the activities and policy of the water economy on the national level (such as: sewage policy, desalination policy, filtering policy, etc.)

This department is responsible for the preparation of proposals for changes in the water prices through levies, grants and duties, control of Mekorot's water supply accounts, and an economic examination of the water economy development programs.

The bureau is in charge of initiating and handling primary and subsidiary legislation, counseling with regard to the implementation of the water laws, drawing up of contracts and agreements, coordinating the activities of the Water Council and the Objections Committee and representing the Water Commission before the various Knesset committees.

This unit is in charge of operating the Water Commission in the domain of administration and organization, within the framework of the existing policy and directives.

The Kinneret Administration operates in the framework of the Kinneret Drainage Authority. The administration is in charge of operations in the Kinneret drainage basin in the spheres of pollution prevention, caring for the shores of the Kinneret, and supervision, control and monitoring within the basin's area. In addition, the administration provides regional service in the disposal of sewage and garbage, which is run as a "closed economy."

The area of Lake Kinneret is 170 sq.kms., but it collects water from a basin of 2,730 sq.kms. in area, most within the boundaries of the State of Israel. The Lake Kinneret Authority is a regional and state body established to manage this watershed.

Lake Kinneret is a reflection of all that happens in the area of the collection basin, and any long-lasting change in the quality of the water in the basic appears in concentrated form in the waters and on the bottom of the lake.

Lake Kinneret has a great variety of uses:

• It serves as a reservoir gathering rain and surface run-off water from rainy season to dry season, being Israel's major source of fresh water.
• The water is rich in fish life.
• The water is both potable and can be used for irrigation, and is pumped to the center of the country and to the Negev for these purposes.
• The lake has religious significance and many vacationers visit its beaches.
• It is the only open, fresh water lake in the State of Israel.

Treating the water in the lake and streams was found to be unviable, as "end of the pollution process" treatment would have accumulative and unforseeable effects. The preferred agreed-upon solution is to reduce and avoid pollution before the water reaches the lake - namely, treatment in the collection basin, coordinating activities in the spheres of urbanization, industry, agriculture and tourism so as to reduce pollution in a controlled and organized manner. Various bodies are involved in this effort, including government ministries, municipal authorities, the Jewish National Fund, the Nature Reserves Authority and other public bodies.

Lake Kinneret Authority
Tel: 972-6-6751676
Fax: 972-6-6752820

3. The Earth Science Research Administration

The Earth Science Research Administration has the following national goals:

1. The establishment and management of national data bases in the field of earth science, including oceanography and limnology. These bases include geological mapping, land-use mapping, subsurface data, and physical and chemical data on the seas and lakes, as well as complete documentation of all the data in the fields of geology and geophysics.
2. Carrying out research in the field of earth sciences, in order to expand knowledge relating to the natural resources of the state as a basis for planning and exploitation, to prevent related environmental hazards both in natural phenomena and in mining and production activities that affect the surroundings.
3. Maintenance of the scientific infrastructure for the following:
   • exploitation and conservation of water sources;
   • phosphates and oil shales;
   • mitigation of earthquake damage;
   • evaluation of the natural resource potential, including hydrocarbons (oil and gas);
   • marine aquaculture.
4. Development and maintenance of research and technolgoical means in the earth science field as a service to economic bodies in the oil exploration and mining fields, and large national projects, among these:
   • maintenance of a geophysical infrastructure (seismic, gravimetric, electromagnetic and shallow seismic - including ground radar teams, data processing);
   • maintenance of a system for monitoring earthquakes;
   • maintenance of means facilitating research in the Dea Sea, the Mediterranean and the Kinneret, including research vessels.
5. Development of methods and taking on new topics in the field of earth sciences, including those in demand abroad, with the aim of marketing knowledge.
6. Help in the absorption of new immigrants.
7. Regional cooperation in connection with the peace treaties, and support for Israel's foreign aid programs.

Three research institutes operate within the framework of the Earth Science Research Administration:

1. The Geological Survey (GSI), which is an integral part of the Administration.
2. The Geophysical Institute (GII), which is a non-profit Government company, by virtue of its founding regulations.
3. The Israel Oceanographic and Limnological Research (IOLR), which is a non-profit institution.

The Earth Science Research Administration
Tel: 972-2-5316129
Fax: 972-2-5373470

1. The Geological Survey of Israel

   The Geological Survey of Israel (GSI) is a Government research institute, operating under the Earth Science Administration. Since its establishment in 1949, it has been involved in research and development in the broadest sense, adapting itself to the changing needs of the country and its status in the region. The objectives of the GSI are to document, study and conduct research in all important aspects of the country's geology.

   The central activities of the GSI are developing and maintaining research capabilities in the earth sciences; earth science data bases; and analytical infrastructure. It also advises various Government branches, public enterprises and economic ventures, and provides services in disciplines which other institutes cannot offer. The GSI performs scientific and applied R&D financed through the GSI budget, joint ventures with major public and industrial bodies, and Israeli and international competitive grant funds.

   An extensive range of disciplines are covered by the GSI staff, among them: macro- and micro-paleontology; geological mapping; mineralogy; geochemistry of rock, soil and water; isotope geochronology; hydrogeology and hydrochemistry; environmental geology; mineral prospecting; paleoseismicity and earthquake risk assessment; stratigraphy; structural geology; petrography and petrology of sedimentary, igneous and metamorphic rocks; isotope geology; engineering geology; oil geology; building materials; paleoclimatology. The GSI is currently engaged in about 150 research projects conducted by single researchers or teams.

   The Geological Survey of Israel
   Tel: 972-2-5314220
   Fax: 972-2-5380688

   
   

2. The Geophysical Institute of Israel

   Founded in 1951 at the Weizmann Institute of Science, the Geophysical Institute of Israel (GII) is a state-owned company specializing in geophysical surveys for oil exploration, water development and site investigation, both locally and abroad. Its expertise in seismic field acquisition extends over a vast range of terrains - from desert sand dunes in Sinai to helicopter surveys over mountains and other inaccessible areas. In addition, it provides a full range of related geophysical services - such as innovative seismic processing services and software development - to companies, institutions and countries in the Mediterranean and Middle East area.

   The Geophysical Institute of Israel
   Tel: 972-3-5507050
   Fax: 972-3-5502925

   
   

3. The Israel Oceanographic and Limnological Research

   The Israel Oceanographic and Limnological Research (IOLR) is a governmental, non-profit corporation affiliated with the Earth Sciences Research Administration. The IOLR consists of three research centers: the National Institute of Oceanography in Haifa, the Yigal Allon Kinneret Limnological Laboratory near Tiberias, and the National Center for Mariculture in Eilat.

   The broad aims of the IOLR are to provide a scientific basis for decision-making on the utilization, conservation and management of Israel's neighboring sea areas and its inland water bodies, and to support the country's economy through the development of new technologies for the exploitation of marine resources. Accordingly, the scope of IOLR's research and development program includes: Oceanography - multidisciplinary research focusing on three higihly diverse seas: the oligotrophic eatern Mediterranea; the tropical desert-enclosed Gulf of Eilat (Aqaba), forming the north-eastern branch of the Red Sea; and the land-locked Dead Sea, the lowest and saltiest on earth.
   Limnology - multidisciplinary reserach focusing on Lake Kinneret (Sea of Galilee), Israel's only large freshwater lake, which provides about one-third of the country's water requirements, serves as a major tourist and vacation site, and is the source of a sizable commercial fishery.
   Mariculture and Marine Biotechnology - research directed at the development of economically viable technologies for the cultivation of marine organisms for food and biochemical materials.

   The IOLR also provides consulting, surveying and monitoring services and various training opportunities within its areas of expertise. While primarily designed to cater to national needs, the R&D program of IOLR encompasses many topics of universal significance. International cooperation is an important aspect of IOLR's activities.

   The Israel Oceanographic and Limnological Research
   Tel: 972-4-8526639
   Fax: 972-4-511911

4. Mines and Quarries Authority

There are about 200 quarries operating today in Israel. Production is estimated to be around 50 million tons of rock minerals, including different kinds of aggregate, gravel, building stones, sand, marble, and other raw materials used mainly in construction. Phosphate mines are found in the southern part of the country, and the minerals extracted are used mainly in the chemical industry as well as in agriculture.

All mines and quarries are under the control and possession of the government, which issues permits to the private sector to exploit these mines/quarries to further the development of the industry.

The Mines and Quarries Authority's new functions will consist of the following:

1. To efficiently distribute natural resources;
2. To control the operation of mines and quarries subject to existing laws and directives;
3. To prevent environmental disturbances and/or pollution;
4. To exploit raw materials according to demand in various regions of the country.

The Fund for the Rehabilitation of Quarries: This fund was set up in order to assure the rehabilitation of deserted quarries and to restore the land to its previous disposition. Fees are imposed on anyone who exploits the land for commercial purposes, calculated as a percentage of the wholesale price of the material extracted (average 0.25%).

Mines and Quarries Authority
Tel: 972-2-6220176
Fax: 972-2-6241987

5. Mekorot - Israel National Water Company

Mekorot - The Israel National Water Company is in charge of the wholesale supply of water to urban communities, industries and irrigation users. It produces and supplies about two-thirds of the total amount of water used in Israel. The company has developed Isarel's water supply systems on a nationwide scale since 1937.

Mekorot supplied some 1,350 million cubic meters of water in 1995, of which 60% were supplied for irrigation and 40% for domestic and industrial uses. Fifty million cm were used to replenish overpumped aquifers. Its crowning achievement, the National Water Carrier, operating since 1964, in 1995 carried some 370 million cm from Lake Kinneret as far as the northern Negev.

Following the peace accord with Jordan, Mekorot is preparing to fulfill all government commitments to supply the Hashemite Kingdom with the agreed additional quantities of water. Mekorot is also engaged in all activities resulting from the agreements with the Palestinian Authority.

Mekorot is planning its activities in accordance with foreseeable demand. It is estimated that the future demand for water in Israel will be 2,150 million cm in the year 2000 and 2,400 million cmin the year 2020, as compared to the annual supply of less than 2,000 million cm today. Following are some of the major planned activities:

• Improving effluent purification methods to meet demand;
• Widening the desalination of brackish and sea water;
• Providing a sophisticated maintenance procedure and control system, to optimize expenses;
• Adjusting the water quality as required for different uses and standards.

Since Mekorot now consumes 8% of the power supplied by the I.E.C. (representing some 26% of the company's operating costs), priority will be given to energy conservation methods.

Mekorot - Israel National Water Company
Tel: 972-3-6230701
Fax: 972-3-6730867

Transport

1. The Public Works Department

The Public Works Department (P.W.D.) was established in 1921 as a general division of public works under the British Mandate. Since then, the P.W.D. has been responsible for paving of inter-urban roads, and, in the past, for construction of most of the buildings for government institutions and state services. The network of roads today includes roads stretching over more than 4,200 km with a paved area of over 30 million sq.m.

Since 1992, funding for inter-urban road projects has increased substantially. The P.W.D.'s annual budget has exceeded $450 million over the last two years. Approximately 70% of the budget has been allocated to road development projects, about 20% to road maintenance, and the remainder to planning and research, operational and service units and administration.

In 1995, the P.W.D. prepared a five-year work program for road development through the year 2000. The primary aim is to ensure the development of an adequate and economical highway system to meet future needs, which will provide service levels similar to those in West European countries. Priorities have been defined, taking into consideration an annual budget ceiling of about $330 million for road development projects. The work program has taken into account national projects planned for the same period, in particular the development of residential areas.

The substantial increase in funding over the last few years has enabled the P.W.D. to:

• Undertake technological improvements, for example in the recycling of material;
• Improve the standards of the geometric design of highways;
• Initiatie projects which aim to improve the use of resources in the future (for example, a Pavement Management System and a Traffic Control System);
• Develop and upgrade computerized systems, improving both the quantity and quality of information available in all divisions;
• Implement data processing systems in the engineering, finance and administration divisions.

Road design and construction projects in Israel are undertaken by the private sector. The public sector is responsible for planning, organizing, directing and supervising the design and construction stages. A considerable part of on-site supervision is also carried out by private consultants. Consultant firms are selected for the design of road projects according to their expertise and sphere of specialization in relation to the scope and complexity fo the project. Selection of companies for project construction is by public tender. While only contractors listed in the Contractors' Register may participate in tenders published in Israel, local contractors are encouraged to associate with foreign contractors with proven international experience, in joint ventures or by other means.

Public Works Department
Tel: 972-2-5823523
Fax: 972-2-5823488

2. Israel Railways

As in most countries, the investments required for the development of the railway network cannot be fully covered by expected income from freight and passenger traffic, and therefore participation by the Government is essential. The Israeli Government considers, together with potential investors, conditions for participation in each of the projects.

Eight projects are current being proposed:

• Three suburban lines within the Tel-Aviv metropolitan area
• One new intercity line between Jerusalem and Tel Aviv
• Three inter-connection lines with the neighboring states
• One line for freight traffic

Israel Railways
Tel: 972-3-6937401
Fax: 972-3-6937480

3. The Cross-Israel Highway

In 1992, the Government of Israel designated the Cross-Israel Highway as a national priority, and established the Cross-Israel Highway, Ltd., with a mandate to plan and build the highway. The highway will extend from the north of the country to the south, with interchanges all along its length, and will form the eastern backbone of the country's transportation network. It will reduce congestion as well as air pollution in central Israel, and will encourage the much-needed dispersal of population and employment from the center of the country to its periphery.

The overall length of the highway will be approximately 300 kms, from the Galilee region to the Beer Sheba area. It has been planned with maximum consideration for the environment, natural surroundings, and historical sites. Its design includes the highest modern engineering standards and safety considerations. It is planned as an expressway, with designed speeds of 120 to 130 km per hour, and two to four lanes in each direction.

The first phase is planned to be 90 km in length, running parallel to the greater Tel Aviv metropolitan area, and will cost approximately $750 million. The cost of the entire highway is estimated to be $2 billion.

The Knesset has passed legislation enabling Phase 1 of the highway to be built as a toll road concession. Four consortia have prequalified and been invited to submit proposals to finance, design, construct, operate and maintain Phase 1 of the highway through a public-private partnership. In addition to the leading Israeli members of the construction and finance industries, these consortia include some of the most prominent international construction firms and operators of toll highways. It is anticipated that a consortia will be awarded the concession during the first half of 1997, and that the selected concessionaire will complete the construction of Phase 1 four to five years later. In order to facilitate the implementation of the project, the Government has allocated budgets for the construction of two major interchanges (Ben Shemen and Kessem) which are critical points for the completion of the project. Work on the Ben Shemen interchange is already at an advanced stage.

The second phase of the Cross-Israel Highway project includes an additional 48 kms to the north and south of Phase 1.

Cross-Israel Highway
Tel: 972-3-6969889
Fax: 972-3-6961192>

Israel Lands Administration and Development Authorities

1. Israel Lands Administration

The Israel Lands Administration was established to oversee management of national lands, which account for more than 90% of Israel's total land area. By law (Israel Lands Administration Law 5720-1960), this land cannot be sold and can only be provided to developers for specific projects on long-term leases. The object is to ensure a preplanned use of the land and to prevent abuse of one of Israel's most valuable and irreplaceable assets.

The first area of ILA activity relates to ongoing management of state lands: maintenance of real estate and preservation of property (contracting management and paying commissions to various agents, such as Amidar and Amigour, paying taxes to local authorities and the central government); mapping and surveying to facilitate registration and decision-making; financial activities (collection of leasehold fees). The ILA is also involved in transferring rights to urban and agricultural land and registering and settling land titles.

The second area of ILA activity relates to planning in the programmatic sense, i.e., allocation of land uses and preparation of a land reserve, as well as investments to create and improve a land reserve for the nation and economy. This involves physical planning (outline plans, urban building plans, engineering plans, and various surveys), infrastructure development (initiating or participating in the activities of firms and local authorities), relocations, expropriations, and acquisitions.

To perform its functions, the ILA follows work procedures that involve frequent contact with the citizen, in addition to various professional topics, such as planning, law, economics, mapping and surveying, fee collection, data-processing, etc. The rapid developments and changes in the Israeli economy are strongly reflected in land matters. Decisions, criteria, and work procedures must be frequently revised and updated.

The ILA directorate has the following divisions:

The Urban Division deals with the transfer of title in urban areas, real-estate management (in coordination with housing companies), tenants, relocations, invitations to bid, investments, and project initiation.

The Agricultural Lands Division supervises uses of agricultural land, including for national parks, nature reserves, and forests; allocation of land for security needs; land uses for waterworks and electricity in rural areas. In addition, the division is responsible for activity in the Arab sector.

The Purchase, Ownership, and Registration Division deals with registering and settling land title, registration in the land registries, purchases of land, amalgamations, exchanges, and expropriation.

The Planning and Development Division handles physical planning and development and drafts programs to direct ILA land-reserve policies so as to satisfy the future land needs of the economy. It is also responsible for preparing investment plans.

The Information Division deals with four areas:

• The existing database of past activities, which permits efficient management of the archives, property registers, and maps;
• Data collection and follow-up concerning the land inventory, with regard to acreage, location, planning status, and current use;
• Follow-up and supervision of transactions;
• Ongoing ILA activities - collection of leasehold fees, payments, etc.

The other divisions are Administration, Finance, Internal Audit, and Legal Advice.

Districts: There are six districts: Jerusalem, Northern, Haifa, Central, Tel Aviv, Southern. The districts are responsible for implementing policy, under the guidance and direction of the divisions and staff units. Each district includes the following functions: administration, finance and bookkeeping, legal advice, contracts and transactions, purchases and expropriations, monitoring and follow-up, title registration and settlement, property registers, planning and development, and mapping and surveying.

Israel Lands Administration
Tel: 972-2-6249349, 6249333/4
Fax: 972-2-6252392

2. Galilee Development Authority

The Galilee covers an area of some 3,260 sq.km. The population of the region is approximately one million Arabs and Jews (including thousands of recently arrived immigrants) living in about 400 settlements.

In 1993 the Knesset enacted The Galilee Law. According to the provisions of this law, the Authority for the Development of the Galilee, the Authority's Board and its Executives were established, and the Authority was declared a corporation.

The Authority's duties include mainly:

• initiating the economic, social, scientific and technological development of the Galilee, and preparing short- and long-term plans to that end;
• promoting economic initiatives for the develoment of the Galilee, coordinating between government ministries, authorities and organizations involved in the affairs of the region;
• initiating studies;
• coordination and appraising of promoters and investors;
• increasing the region's capacity to absorb new immigrants.

Outstanding projects include:

• Industrial Parks
• R&D Project at the Jordan Valley College
• Landing strips in the Lavi and Kabri areas are being designed
• "Mishmar" Medical Products: The development of medical industries adjacent to the Galilee hospitals, including supplementary medical methods, pain clinics, and in the future, health resorts.
• Tourist Projects: The construction of Monfort Lake, and a Druze tourist project in Beit-Jan.
• Institute and Archive for the study of the Galilee.

Galilee Development Authority
Tel: 972-4-8516153/4
Fax: 972-4-8516153

3. Negev Development Authority

The main duties of the Negev Development Authority, as defined by law, are to initiate, plan and promote enterprises and activities that will advance economic and social development, and to coordinate all government and other authorities active in the development of the Negev.

The Negev Development Authority has been authorized to encourage large corporations and government authorities to move their offices to the area, and promote other activities that will increase the population and facilitate the absorption of new immigrants.

The target of the development, according to the forecast of the Negev Development Authority, is to increase population in the area by 500,000 inhabitants during the next ten years. This means turning Beer Sheba and its surroundings into the metropolis of southern Israel. Infrastructure development, such as road, railways, airports and industrial zones in the Negev must become a high national priority.

In order to achieve these goals, the Negev Development Authority has prepared a 20 Project Plan, including:

• The Beer Sheba metropolis - The population of the city is to grow to 650,000 by the year 2005.
• A second international airport at Nevatim
• Railway transportation - mass and fast communication with the center of the country
• Bedouin urbanization
• Waste site at Oron
• Developing the Soroka Medical Center, Ben-Gurion University and the International Desert Center at Sde Boqer
• Promoting culture and arts institutions in Beer Sheba
• Toruism development
• Hippodrome in Beer Sheba
• Landing strips in the Negev
• Providing grants to encourage capital investment.

Negev Development Authority
Tel: 972-7-6295626/7
Fax: 972-7-6295627