UPDATE

IN THE PIPELINE: ISRAELI BYPASS WATER PROJECT IN THE VALLEY

FEBRUARY 2020

This update examines the construction of tlement enterprise at the expense of Pales- a bypass water pipeline on the lands of the tinian communities. The project’s execution Palestinian village of Bardala in the northern is made possible due to the involvement of in the occupied . The Israeli and international private corporations, Bardala bypass project will transport fresh- including the German Herrenknecht AG and water extracted from occupied Palestinian the US-based CETCO Mineral Technology. water sources to nearby Israeli settlements, Control over water resources is of great geo- 1 bypassing Palestinian communities. Palestin- political importance, especially in the context ians have no independent access to the water of prolonged occupation. Exploitation of Pal- sources in question. The project, advanced by estinian and Syrian water resources by the oc- 2 Mekorot, ’s national water company, is cupying power has contributed to the expan- a mechanism for consolidating Israel’s hold sion of settlement agricultural production. At over Palestinian land and natural resources. the same time, occupied communities are de- Its route and raison d’être further entrench nied the right to control water and other nat- Israel’s occupation, benefitting the illegal- set ural resources, resulting in intense economic de-development. 1 MahsomWatch - Women for Human Rights and Against the Occupation, “A Tour in The Jordan Prior to publication, Who Profits contacted all Valley,” 10 April 2019. companies profiled herein. As of the date of 2 Who Profits, Mekorot’s Involvement in the publication no responses were received. Israeli Occupation, December 2013. The Bardala Bypass Pipeline drilling project was estimated at 2.5 million The village of Bardala is located in the north- NIS (100,000 to be used in 2019, 500,000 in ern Jordan Valley, an area rich in groundwa- 2020 and the remainder for after 2020).10 ter, springs and wells.3 The Jordan Valley, In March 2019, Mekorot announced that which accounts for approximately 28.5% of Drawasha Subhi, an infrastructure develop- the West Bank, has long been a target for the ment contractor, won the tender.11 Israeli agricultural sector due to its favorable The new bypass pipeline is one of several such climate, fertile land and plentiful water sup- projects designed to entrench Israel’s de-fac- 4 ply. to hold over the occupied West Bank. Under Bardala was connected to the Israeli national the pretext of preventing alleged ‘water theft’ water grid in 1975. Since then, the community by underserved Palestinian communities, the has been dependent on Mekorot for its water Israeli Civil Administration (ICA) and Mekorot supply, despite the fact that there are three are elaborating an extensive system of bypass water wells situated within the village’s terri- pipelines designed to facilitate the smooth tory. This is because Israel has prevented the and rapid transfer of to near- residents from maintaining or extracting wa- by settlements while bypassing Palestinian ter from these wells.5 The surrounding Israeli towns and villages.12 settlements rely on Bardala’s groundwater for Crucially, the Israeli occupying power deducts 6 drinking, as well as for agriculture. Nearby not only water payments, but also the costs Israeli illegal settlements, such as Mechola, of alleged water theft from clearance reve- take pride in their green landscapes and plan- nues and the taxes designated to the Pales- 7 tations. Meanwhile, on average Palestinian tinian Authority (PA).13 This means that Pales- residents of the Jordan Valley have access to tinian taxpayers effectively shoulder the cost 8 only some 20 liters of water per person a day. of any amount of water that is unaccounted In September 2018, Mekorot published a for. Israel’s deduction of Palestinian revenues tender for the development of a bypass pipe- for water as well as electricity payments cir- line near the village of Bardala (Tender 2018- cumvents its obligation under the Paris Proto- The bypass pipeline will be connected col to return tax and custom revenues to the .(פ/75 to the current Mekorot drilling site through a PA.14 Circumventing this obligation renders it 500 meter long fortified steel pipeline.9 The meaningless and inapplicable. 3 The Applied Research Institute - Jerusalem. The Bardala project, is one of a number of Bardala Village Profile, February 2006:3. other bypass pipelines planned by Israel. By- 4 Who Profits, Greenwashing the Occupation: pass pipelines will be built in a number of The Solar Energy Industry and the Israeli Occupation, February 2017:18. 5 The Applied Research Institute - Jerusalem. 10 On file with Who Profits Bardala Village Profile, February 2006:8. 11 On file with Who Profits 6 Judea and Samaria Council, Stolen Water?, 12 Ministry of Defence’s Subcommittee for Ju- (Hebrew) myesha.org.il, 10.5.17. dea and Samaria, Protocol No. 64, (Hebrew), 19 June 7 Mechola Settlement, About, (Hebrew) 2018:22. mechola.co.il 13 Ministry of Defence, Water Plans for 2040 8 B’tselem. The Jordan Valley. November Will be Ready Within Four Years, (Hebrew) 19 June 2017. 2018. - Gisha, Will we Always Have Paris?, 13 Sep He- 14) פ/Mekorot company Tender 2018-75 9 brew) tember 2012.

2 | IN THE PIPELINE other locations including near the Palestin- ian towns of Huwara, Nabi Elyas and Azzun Atme.15 Operating in tandem with a complex web of bypass roads, including newly built and planned roads bypassing these very same towns,16 water bypass pipelines ensure Israeli control over vital infrastructure. In June 2018, the head of the ICA, Brigadier General Ahvat Ben-Hur, announced that a master plan for water distribution in the Jor- dan Valley for 2020-2040 is in its final stages, and includes repairs and fortification of exist- ing Mekorot facilities. New drilling projects and pipelines will also be constructed accord- ing to Ben-Hur’s indications.17 Bardala Bypass Pipeline construction site. The result of such policies and projects is what Photo: Who Profits | 18.6.19 has been identified as “water apartheid”18 in the occupied territory, whereby Jewish Israeli related issues on Palestinian land, including settlers enjoy an uninterrupted supply of wa- approval and denial of permits for the ex- ter while are denied their collec- traction of water.19 A further order issued by tive right to water through a set of institution- the military – Military Order 291, issued De- alized discriminatory policies and practices. cember 1968, declared all water resources to be ‘public property’, bringing all privately and municipally owned Palestinian water facilities Water under Occupation under Israeli control.20 Following the Israeli occupation of the West Bank, Gaza and East Jerusalem in 1967, Is- The enforcement of these orders was later di- rael issued Military Orders 92 and 158. The vided between various Israeli state bodies, in- orders, issued in August and November 1967 cluding the ICA, the Attorney General of Israel, respectively, granted officials appointed by the Israeli military, police and military courts, 21 the Israeli military authority over all water the Israeli Water Authority and Mekorot. The Israeli Water Authority and Mekorot in- 15 Ministry of Defence’s Subcommittee for creased their activity in the West Bank, taking Judea and Samaria, Protocol no. 64, (Hebrew) 19 June 2018. over Palestinian water resources, expanding 16 Who Profits, Roads and Infrastructure Nabi drilling projects and constructing water wells. Elyas Bypass Road (Highway 55), January 2018 and Arutz Sheva, This is What the Huwara Bypass Road 19 Israeli Military, Order No. 947. Also see: Arutz Sheva Will be Liked, (Hebrew) , 4 April 2019. Israel State Comptroller, Judea and Samaria Annual 17 Ministry of Defence’s Subcommittee for Ju- Report, (Hebrew) 2013:133. dea and Samaria, Protocol no. 64, 19 June 2018; Arutz 20 Selby, Jan. Water, Power and Politics in Sheva, Water Theft in Judea and Samaria, 19 June the Middle East: The Other Israel-Palestine Conflict, 2018 19.6.18 and; Israel Water Authority, Approval of I.B.Tauris, 2004:81. Consumption - Jordan Valley,(Hebrew) 11 June 2015. 21 Israel State Comptroller, Judea and Samaria 18 Al Haq, Water For One People Only. Dis- Annual Report, (Hebrew) 2013:146. criminatory Access and ‘Water-Apartheid in the OPT, 2013:90-91.

3 | IN THE PIPELINE Extracted water was used to supply illegal set- not brought before the JWC for approval.27 tlements and their agricultural expansion. Furthermore, Israel’s total control of Area C, The terms of Israel’s control over the Palestin- where the West Bank`s main water resourc- ian water sector, though long present on the es are located, renders this agreement obso- 28 ground, were reorganized and codified in the lete. Oslo Accords. The Accords stipulated that the Oslo stipulated that the PA must purchase PA would be responsible for water facilities water from Mekorot, further entrenching Pal- and distribution to Palestinian communities estinian dependency on Israel for the supply in Areas A and B, while Israel, through Me- of water, while accumulating increased debt. korot, would be responsible for the supply of Israel’s control over water sources and sup- water to Palestinian communities and settle- ply, grants it the power to dictate the terms ments in Area C of the occupied West Bank.22 of purchase. Since the Palestinians are pre- Under the Accords, a Joint Water Commit- vented from installing water networks, they tee (JWC) was set up, comprised of an equal are forced to pay eight times more than what number of Israeli and Palestinian officials. The Israeli settlers pay for water, due to transpor- 29 JWC was tasked with overseeing the manage- tation fees. In addition, due to the lack of ment of shared aquifers23 and water distribu- cost recovery at the service-provider level, tion to the West Bank and Gaza.24 However, every purchase of bulk water from Mekorot as noted by the World Bank, “the JWC does puts the Palestinian Water Authority (PWA) not function as a ‘joint’ water resource man- further in arrears to Israel. Those payments agement institution because of fundamen- are deducted from taxes Israel collects on tal asymmetries.”25 In 2009, there were 106 behalf of the PA, with adverse impact on the Palestinian water projects and 12 large scale Palestinian economy as a whole. In 2017, the 30 wastewater projects awaiting approval from sum of arrears was US$335 million. More- the JWC. Some of these projects dated back over, Israel deducts the cost of alleged water 31 to 1999. Had they been approved, these pro- theft from taxes owed to the PA. posed Palestinian projects would have served Furthermore, Israel uses its control over wa- almost 2 million people.26 By contrast, all Is- ter as a part of its broader policies of control raeli projects in the West Bank, except one, and as a mechanism for forced displacement. were approved by the JWC. Moreover, Israe- Through Mekorot, Israel only supplies the li water projects which extract water from bare minimum of water needed, and often shared aquifers within the , were cuts the water supply to entire communities altogether.32 According to a report by Amnes- 22 Israeli Water Authority, The Issue of Water Between Israel and the Palestinians, (Hebrew) March 27 Ibid. p.ix 2009:7-8. 28 Amnesty International, Troubled Waters- 23 The use of water resources from the aquifer Palestinians Denied Fair Access to Water, 2009:18. inside the Green Line does not need to get approval 29 Al Haq, Water For One People Only. Dis- from the JWC. Those are entirely in the hands of the criminatory Access and ‘Water-Apartheid in the OPT, Israeli water authority. The World Bank, Assessment 2013:49 of Restrictions on Palestinian Water Sector Develop- 30 Ibid. p.5 ment, April 2009:p.ix. 31 Ministry of Defence’s Subcommittee for 24 Ibid p.47 Judea and Samaria, Protocol No. 64, (Hebrew) 19 June 25 Ibid. p.ix 2018:24. 26 Ibid. p.9 32 B’tselem- The Israeli Information Center

4 | IN THE PIPELINE ty International, settlers receive on average systems and services. four times more water than Palestinians. Wa- In June 2019, the company’s products were ter consumption by Palestinians in the oPt is documented by Who Profits in the construc- at 70 liters a day per person. This is far below tion of Mekorot’s new bypass pipe line in the stipulated 100 liters per capita daily rec- the Palestinian village of Bardala. The bypass ommended by the World Health Organization pipeline is meant to provide water to Israel’s (WHO). Water consumption by Israeli settlers illegal settlements and deepen Israel’s control is about 300 liters, per capita, per day. The re- over Palestinians water supply, while exploit- port also highlights that in some Palestinian ing Palestinians natural resources. communities water consumption is as little as Traded: Public. Traded in Nasdaq under the 20 liters per day. This corresponds to the ab- ticker symbol MTX solute minimum recommended by the WHO during situations of emergency response.33 Is- Ownership: C.E.O: Douglas T. Dietrich. Main raeli settlements in the Jordan Valley and the shareholders: Blackrock Inc. (12.07%), Van- Dead Sea area are allocated up to 18 times guard Group Inc. (9.80%), Price T Rowe As- more water for agricultural use than Palestin- sociates Inc/ MD/ (6.60%), Dimensional Fund ians in the West Bank.34 Advisors LP. (5.89%) The Bardala bypass pipeline is part of Israel’s Subsidiaries: Alex Mining & Oil Service Com- occupation infrastructure, aimed at the- ex pany (Egypt), Amcol Australia Pty. Ltd (Aus- propriation of Palestinian natural resources tralia), AMCOL CETCO do Brasil Servicos e for the benefit of the occupying economy. Produtos de Construcao Ltda. (Brazil), AMCOL This pillage of Palestinian natural resources Dongming Industrial Minerals Company Limit- is considered a war crime under international ed (China), AMCOL Health & Beauty Solutions, law, 35 and has an adverse knock on effect on Incorporated (Delaware), AMCOL (Holdings) Palestinian human and economic develop- Ltd. (UK), AMCOL International B.V. (Nether- ment. lands), AMCOL Korea Limited (S. Korea), Amcol Mauritius (Mauritius), Amcol Minerals EU Lim- ited (UK), American Colloid Company (Dela- Corporate Complicity ware), Barretts Minerals Inc., Batlhako Mining Ltd. (South Africa), CCS, Cetco SP. Z.o.o., s.k.a., CETCO Mineral Technology (Poland), Centre International de Couchage Profile: A US based public company that de- CIC Inc. (Canada), Cetco Oilfield Services Com- velops, produces and markets mineral-based pany Asia Ltd. (Malaysia), Gold Lun Chemicals and synthetic mineral products and related (Zhenjiang) Co., Ltd. (China), Ingenieria y Con- struccion CETCO ICC Limitada (Mexico), Min- for Human Rights in the Occupied Territories, Water Crisis, 11 November 17. erals Technologies do Brasil Comercio e Indu- 33 Amnesty International, Troubled Waters- stria de Minerais Ltda. (Brazil), Minteq Italiana Palestinians Denied Fair Access to Water, 2009:3. S.p.A (Italy), MTI Ventures B.V. (Netherlands), 34 Al Haq, Water For One People Only. Dis- Nanocor LLC, Sivomatic B.V. (Netherlands), criminatory Access and ‘Water-Apartheid in the OPT, SMI NewQuest Private Limited (India), 2013:52. Speciality Minerals France S.A.S (France), Vol- 35 Al Haq, The Importance of Legally Binding In- strument on the Right to Development, 30 April 2019. cay International LLC Partners: Melgol Ltd. (Israel Distributor), AP-

5 | IN THE PIPELINE SCOP, Tensar International Corporation (TIC), Geosynthetics Limited, Vermeer Canada, Ver- meer Manufacturing, Ashapura Volclay Ltd, Talisman, Solco Head office: Head office: 622 Third Avenue, 38th Floor, New York, New York 10017 USA Phone: +1-212-878-1849 Website: mineralstech.com/ Global presence: Poland, Egypt, Australia, Brazil, China, USA, UK, Netherlands, Thailand, S. Korea, Turkey, India, Mexico, Singapore, Bardala Bypass Pipeline construction site. South Africa, Canada, Czech Republic, India, Photo: Who Profits | 18.6.19 Malaysia, Germany, Spain, , Australia, Chile, , Japan, Ireland, Italy, Korea, In- rael Electric Corporation (IEC), Bezeq, Nuova donesia, Austria, Finland, Portugal, Slovakia. Ghizzoni SPA Head office: Hamanof 8., Rehovot 7638607, Israel Hai Dolev Holdings Ltd. Phone: +972-8-9468818, +972-52-5546120 Profile: a private Israeli company specialized in planning and carrying out drilling projects. Website: www.dolev.zapages.co.il In June 2019, the company’s products were Global presence: Italy documented by Who Profits in the construc- tion of Mekorot’s new bypass pipe line in the Herrenknecht AG Palestinian village of Bardala. The Bardala by- Profile: A German provider of technical solu- pass pipeline is designed to serve Israeli set- tions in mechanized tunneling. tlements in the northern Jordan Valley. In June 2019, the company’s products were The company also took part in a sewage drill- documented by Who Profits in the construc- ing project in the Har Homa settlement in tion of Mekorot’s new bypass pipe line in East Jerusalem, and in a drilling project for the Palestinian village of Bardala. The bypass the “Museum of Toleance” which was built on pipeline is to provide water to Israel’s illegal a Palestinian cemetery in Jerusalem. settlements and deepen Israel’s control over Traded: Private Company Palestinians water supply, while exploiting Revenues: $5M-$10M (25,000,000 NIS in Palestinians natural resources. 2018). In 2011, Herrenknecht supplied 3 TBM’s Ownership: The company is private- (Tunnel Boring Machines) for the excavation ly owned by Yoseph and Haya Dolev. of tunnel No. 1 (section B) and tunnel No. 3 CEO: Yoseph Dolev (section C) of the -Jerusalem fast train Partners: Maya Aqua. Ltd. (A1 train). Company clients include: the Israeli Ministry The Herrenknecht TBM’s were costume made of Defense and military, Mekorot, Rafael, Is- for the specific type of land in which the tun- nels are located. Thus, the company is well

6 | IN THE PIPELINE aware that their machines are used for min- tion of Mekorot’s new bypass pipe line in the ing in occupied Palestinian land. Palestinian village of Bardala.The Bardala by- The TBM is a massive scale machine used to pass pipeline is designed to serve Israeli set- excavate tunnels. The machine operates as an tlements in the northern Jordan Valley. independent work unit, which includes a con- Traded: Public. Traded in Euronext Brussels, trol room inside the machine. Euronext Paris, ADR The machines were made in Germany by Her- Ownership: Solvac SA, a public limited lia- renknecht, which is also the manufacturer of bility company traded on Euronext Brussels, the concrete segment’s factory equipment holds 30.71% of company shares. Additional for tunnel lining. The concrete segments for shareholders include Blackrock Inc. (3.40%) tunnel lining are produced with the help of and Solvay Stock Option Management SPRL a carousel plant supplied by Herrenknecht (2.72%). Formwork. CEO: Ilham Kadri The company also supplied a curing tunnel The company is publicly traded on Euronext with heating system. At the end of the work, Brussels under the ticker symbol SOLB.BE. It the machines can be sold back to Herrenk- also has a secondary listing on Euronext Par- necht, which renovates and re-sales it to oth- is and its shares are traded over the counter er large-scale projects. (OTC) as a Level 1 sponsored American De- Traded: Private Company pository Receipt (ADR) through Citibank. Ownership: Chairman: Martin Herrenknecht Subsidiaries: The company has dozens of sub- Subsidiaries: The Herrenknecht Group con- sidiaries worldwide. sists of the operating entity Herrenknecht AG Partners: Strategic partners include Lockheed as the parent company and around 80 subsid- Martin, SGL Carbon, Safran Group, Anthea iaries and associated companies in Germany Group, Penso and abroad. Head office: Head office: Rue de Ransbeek, Head office: Schlehenweg 2, 77963 Schwa- 310, 1120 Brussels, Belgium nau, Germany Phone: +32-22642111 Phone: +49 (0) 7824-302-0 Website: solvay.com Website: herrenknecht.com/ Global presence: Global | Argentina, Austra- Global presence: Argentina | Australia | In- lia, Austria, Belgium, Brazil, Bulgaria, Canada, dia | Panama | Brazil | USA | Chile | China | Chile, China, Colombia, Croatia, Czech - Re France | Hong Kong | Indonesia | Italy | Mex- public, Ecuador, Egypt, Finland, France, Ger- ico | Netherlands | Portugal | Russia | Saudi many, Greece, Guatemala, Hungary, India, Arabia | South Korea | Switzerland | Turkey | Indonesia, Ireland, Italy, Japan, , Venezuela Latvia, Mexico, Netherlands, New Zealand, Solvay Peru, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Profile: A publicly traded Belgian advanced Korea, Spain, Switzerland, Taiwan, Thailand, materials and specialty chemicals company. Turkey, Ukraine, United Arab Emirates, United In June 2019, the company’s products were Kingdom, United States, Uruguay, Venezuela, documented by Who Profits in the construc- Vietnam

7 | IN THE PIPELINE