Delek Infrastructures closes its first deal.
Sources inform ''Globes'' that Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Infrastructures Ltd. has signed its first contract for the sale of electricity from its power station in Ashkelon. The company will provide the polymer cloth factory of Nilit Ltd. in northern Israel with 22 megawatts of electricity a year for 3-4 years for a total of NIS 200 million. The contract comes only a month after the company obtained an electricity production and supply license.
This is the first private electricity supply contract in Israel between a private producer and a large customer. The power station already supplies 50 megawatts a year to the Ashkelon desalination facility owned by VID Desalination Ltd., in which Delek is a partner.
Although Nilit is considered a large electricity customer, Israel Electric Corporation (IEC) did try to prevent the contract with Delek, despite the loss of revenue that will ensue, because of IEC's low electricity reserves.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008