The Ministry of Energy and Water Resources is delaying the construction of private power stations with total capacities of more than 1,000 megawatts at an investment of more than NIS 4 billion. The entrepreneurs behind the power stations submitted requests for conditional licenses to produce electricity, to be approved by Minister of Energy and Water Resources Silvan Shalom, many months ago. However, the requests are “stuck” in the Ministry’s Electricity Administration, due to power struggles between the Electricity Administration, headed by the leadership of Yehuda Niv, and the Public Utilities Authority (Electricity), headed by Orit Farkash-Hacohen. Without the Minister’s approval, the power station operators will not be able to sign financing agreements to fund their construction.
Sources inform ''Globes'' that IES HOLDINGS LTD. (TASE:IES) submitted a request for approval to the Minister of Energy and Water Resources for a temporary license for a power station the company wants to establish in Palmachim. The company, controlled by businessman Haim Geyer, is asking to build a 400 megawatt power station in the Palmachim industrial park, at a cost of NIS 1.9 billion. Another initiative, similar in size, which has been waiting six months for Minister Shalom’s approval, is the power station in Beer Tuvya. IPM, the company behind the initiative, submitted the request for a conditional license to Shalom for approval in June, after successfully making it through an extended bureaucratic obstacle course. A third request was submitted to Shalom by Tahal Group International BV, which has requested a conditional license for a pumped storage hydroelectric power station in Kochav Hayarden, near Beit Shean, with a 340 megawatt capacity.
The Ministry of Energy and Water Resources responded, saying, “The matter is being discussed in professional ranks within the Ministry, after which it will be passed to the Minister.”
Published by Globes [online], Israel business news - www.globes-online.com - on January 2, 2014
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