Four companies are planning to bid in the tender for laying a natural gas pipeline in the Jerusalem region, sources inform "Globes." The Ministry of National Infrastructure, Energy, and Water Resources published the tender last September. The companies are Dor Alon Energy in Israel (1988) Ltd. (TASE: DRAL), together with Ya'acobi Brothers Group; Merimon Natural Gas, which won the tender to lay the pipeline in northern Israel; Salamander Energy, together with FK Generators and Equipment; and a company jointly owned by Baran Group (TASE: BRAN; Nasdaq: BRANF) and Enlight Renewable Energy Solutions Ltd. (TASE:ENLT).
The winning company will lay the gas distribution pipeline, to which enterprises and institutions in the area can be connected for natural gas consumption. The company will also operate the pipeline for 25 years. Of the six license areas for laying a natural gas pipeline, Jerusalem is the last for which the company to lay the pipeline is being selected. The tender is Jerusalem is considered one of the most complex, given the great density in the city. The tender is estimated at NIS 120 million, of which the Ministry of National Infrastructure, Energy, and Water Resources will grant NIS 60 million to the winner.
The areas that the winning company will have to reach with its pipeline include the Givat Shaul industrial zone, Hadassah Ein Kerem Medical Center, Hadassah Mt. Scopus Medical Center, the Hebrew University of Jerusalem Mt. Scopus campus, the government complex in East Jerusalem, Israel Police headquarters, Shaarei Zedek Medical Center, the government complex (Kiryat HaMemshala), the Hebrew University of Jerusalem Givat Ram campus, the hotel boulevard at the entrance to the city, the Har Hahotzvim industrial zone, and the Beit Shemesh industrial zone.
Ministry of National Infrastructure, Energy, and Water Resources sources expressed delight with the response to the tender, noting that they did not expect four bidders, in view of the tender's difficulty.
Government hospitals consume expensive and polluting fuel
Despite the lively response to the laying of the gas pipeline in Jerusalem, all 11 government hospitals in Israel currently consume expensive and polluting fuel. The Ministry of Health is not allowing the hospitals to sign a contract with the gas distribution companies, and is not publishing a tender to convert them to natural gas, although the tender has been ready for publication for several months.
This tender is estimated at NIS 130 million. The winning company will convert the hospitals to natural gas consumption. A company responsible for the conversion will bid in the tender in partnership with a natural gas distribution company, which will undertake to supply the gas to hospitals for five years.
Natural gas is considered the cleanest fuel, and the cheapest of them by more than half. The transition to natural gas consumption will save the government hospitals NIS 30 million a year. Sheba Medical Center will save NIS 8 million a year, and the other hospitals will save NIS 2-3 million.
The Ministry of Health said in response, "The tender documents are in the final preparatory stages, following reconsideration of the tender model and consideration of including other hospitals. The tender is slated for publication next month."
Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015