Israel’s most ambitious hydro-electric project, the Mediterranean-Dead Sea Canal-which fell victim to the country’s economic crisis a year ago-has been declared officially dead.
The canal company’s Board of Directors decided Sunday to terminate the enterprise and dismiss its employes. The disposal of the $100 million in seed money raised by the sale of Israel Bonds in the U.S. and elsewhere remains unclear.
In winding up the project, the Board blamed Energy Minister Moshe Shahal for its demise and urged the State Comptroller to investigate the developments which forced the closure. Uri Wirzburger, director of the canal company, said in a statement that it was impossible to run a government company without the support of the responsible Minister.
The canal, which was to utilize the water power generated by the more than 1,000-foot drop from sea level to the Dead Sea to produce cheap energy, was launched when the Likud government was in office and Yitzhak Modai, now Finance Minister, was Minister of Energy. His successor, Shahal, is a Laborite, and, according to Wirzburger, was hostile to a project launched by Likud.
ECONOMIC SITUATION DOOMED THE CANAL
Shahal said that given the economic situation, the canal was doomed, though he would propose that the government freeze the project so that it might be resumed when the economy improves. Shahal also insisted that it is time to explain to world Jewry the reasons for the failure.
He suggested that the canal company write personal letters to each of the contributors who purchased $100,000 worth of Israel Bonds to launch the project. According to Shahal, most of them would understand the economic realities and would not insist on the immediate refunding of their loan. Those who want repayment should receive it because the honor of the government is at stake, Shahal said.
The management of the Israel Bond Organization said it was unlikely that the loans will be repaid earlier than the original timetable. If the project is ever revived, the contributors would still deserve the right to be honored as the founding fathers of the canal, the Israel Bond Organization management said.
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