Sources inform ''Globes'' that Dalia Power Energies Ltd. has found an alternative site for the power station in the Zafit area after the Planning Administration rejected a proposed site near Kibbutz Maayan Zvi. The new site is located near the path of the natural gas pipeline and an Israel Electric Corporation (IEC) power station. Finding the new site has removed one of the project’s major obstacles.
Dalia Power has also obtained a conditional license to produce electricity from the Public Utility Authority (Electricity). The company also has obtained the consent of the Israel Land Administration (ILA) to build a power station near Moshav Mevo Betar, subject to the land being rezoned from agriculture.
Dalia Power is owned by the United Kibbutz Movement procurement company, with a 40% stake, Hiram-Epsilon Ltd., and the Israel Infrastructures Fund, which recently acquired 20% of the company. The Israel Infrastructures Fund is owned by Harel Insurance Investments Ltd. (TASE: HARL) and businessman Yehuda Raveh.
Dalia Energy plans to build a 560-megawatt power state, with an option to expand its production to 840 megawatts, amounting to 8% of Israel’s power production. The power station will cost $300-400 million to build and is due to be completed by 2009-10.
The sources added that with the progress in the project, Dalia Energy has initiated talks with foreign banks to finance it. The company reportedly is applying to foreign banks for financing because of their greater experience in financing power stations compared with Israeli banks.
Published by Globes [online], Israel business news - www.globes.co.il - on August 9, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007