The Ashkelon Build, Operate and Transfer (BOT) Project consists of the financing, design, construction, operation and transfer of a seawater desalination plant with guaranteed production capacity of up to 100 Mm(3)/y. This plant will be located at the Ashkelon site of the Eilat-Ashkelon Pipeline Corporation. The design of the plant is such that it enables an extension of the production capacity during the operating phase of the project. The plant is designed, constructed and operated by a Consortium made up of three international sponsors, who have created a special purpose company, V.I.D. Desalination Company Ltd. (the SPC or VID) in order to carry out the project. The companies and their respective initial participation in the share of the capital are: IDE Technologies Ltd., 50%; Veolia Water S.A., 25%; Elran Infrastructures Ltd, 25%. The project is governed by a BOT Agreement entered into between the Consortium and a government agency, the Water and Desalination Authority (WDA). The Agreement was awarded for a period of 24 years and 11 months from the effective date. The production of the plant will be sold to the WDA, whose obligations (including payment) under the Agreement are deemed to be government obligations. The water price offered by the Consortium (52.7 cents/m(3)) is the lowest price ever offered in a 25-year BOT project for seawater desalination. Construction is well underway, on schedule, and the plant is expected to begin water production in early 2005.