i was not aware that the defense ministry is not part of the state, what the article should say is that the taxe payers will pay the whole bill...

If the water authority want to pay part the cost because its an experimental water conservation scheme thats fine but IMI own the site and are responsible for the pollution so why are they not footing the bill ? Instead its all being funded by the taxpayer, some money the government is giving direct and other money indirect from the defense budget.

IMI is Goverment Corporation. It is part of the government. When Goverment owned entity pollutes waters, Goverment pays for cleanup. And by Goverment paying I of cause mean taxpayers. Does it matter to you from what part of the budget it comes from?