The new company is planned to have one third of IEC's production capacity.
The new power plants that Israel Electric Corporation (IEC) is constructing as part of its emergency plan will be privatized. This is what has emerged from discussions on the outline of the reform of the corporation. Under initial understandings that have not yet been formally agreed, a new company will be set up that will be under private ownership, with IEC holding a minority stake. IEC workers may also be allowed to hold part of the minority interest in the company, in return for their agreement to reform. The new company will control about one third of the installed power generation capacity planned by IEC by 2014. In this way, it will be a real competitor to IEC, unlike the private producers, who have not lived up to the expectations of the Ministry of Finance and the Ministry of National Infrastructures.
The parties to the discussions on reform of IEC, representing the government, the corporation, and the workers, are due to meet in Tel Aviv tomorrow. Sources inform "Globes" that in discussions held over the past few weeks, substantial progress has been achieved on reform, but two subjects have not been discussed in depth: the introduction of flexible working at IEC, and the compensation that the workers will receive for agreeing to reform.
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2010
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