Treasury mulls Ashelim auction between 3 finalists

The finalists in the solar power plant tender are Clal Energy, Granite Hacarmel, and France's EDF-Energies Nouvelles.

The Ministry of Finance is considering holding an auction between the three finalists in the NIS 450-500 tender for the Ashelim photovoltaic power station. Sources inform ''Globes'' that the three finalists are Clal Energy Ltd., Granite Hacarmel Investments Ltd. (TASE: GRNT), and France's EDF-Energies Nouvelles SA (EDF-EN). The best and final offer process has been used successfully for other national infrastructure projects, including Road 6 (the Yitzhak Rabin Highway toll road).

The BOT (build, operate, transfer) tender is for the construction and operation of a 30-megawatt PV power station, which will be adjacent to Ashelim's two 125-megawatt thermosolar power stations. The estimated cost of the entire project is $1.5-2 billion.

Four consortia submitted bids in the PV power station tender, which closed in September 2011. Since then, however, two developments occurred which justify a further reduction in the final offers: a 15% reduction in the cost of PV panels; and a 23% cut in electricity rates for large PV facilities set by the Public Utilities Authority (Electricity). The Ministry of Finance estimates that the lower cost of PV panels could lower the cost of the PV power station by NIS 50 million.

Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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