Israel's Granite to build Cyprus desalination plant

TEL AVIV May 25 (Reuters) - Israel's Granite Hacarmel Investments (GRNT.TA) said on Sunday its subsidiary GES signed an agreement to build a desalination plant in Cyprus for $11 million.

GES has a 60 percent share in the consortium that won a tender to build the plant and operate it for 10 years.

The plant will desalinate 3.5 million cubic meters of water a year and will be completed by the end of 2009.

GES said the plant will produce income of $40 million over the 10-year period.

Granite Hacarmel said this was part of the company's strategy to expand its operations overseas following a natural gas project in Serbia and a green energy deal in India.

(Reporting by Tova Cohen; editing by Elaine Hardcastle)