The 50-MW plant is due to come on line in 2014.
Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Infrastructures Ltd. has signed a contract with Nilit Ltd. to build and operate a private power plant at the company's polymer cloth factory in Migdal Ha'Emek. The companies signed the letter of intent in January.
Delek Infrastructures set up a subsidiary, IPP Delek Ramat Gabriel Ltd., in which it owns a 57% stake, for this project. The rest of IPP is owned by Sigma Epsilon Power Engineering Ltd. and Adi Energy Ltd.
The 50-megawatt natural gas driven Nilit power plant will cost an estimated $60 million to build. Surplus electricity will be sold to other factories in the area and to Israel Electric Corporation (IEC) (TASE: ELEC.B22). IPP Delek will operate the power plant for 27 years after financing is closed, which is due in 2011. The power plant is due to come on line by 2014.
Delek Infrastructures is the first company to build a private power plant for commercial use. Its 87-megawatt provides electricity for the Ashkelon desalination plant, in which Delek Group is a partner.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2008
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