This paper presents the structure and features of the South Israel (Ashkelon) project, which consists of the financing, design, construction, operation and transfer of a seawater desalination facility with a guaranteed production capability of 100 Mm(3)/y for a term of 25 years, The water price of USc 52.7/m(3) offered by the V.I.D. Desalination Company Ltd., the consortium constructing the Ashkelon plant, is one of the lowest prices ever offered in a BOT project for seawater desalination.