Arison Holdings Ltd. unit Solel Boneh International Ltd. has signed a $200 million contract to plan and build the Palo Viejo hydroelectric project in Guatemala. Construction of the 85-megawatt plant will take about 32 months.
Solel Boneh International will plan and build the dams, dig and cast the spillways, build the reservoir, dig tunnels, lay water pipes, build access roads, install the turbines, and build the machinery building.
Solel Boneh International is a wholly-owned subsidiary of Solel Boneh Building and Infrastructure Ltd., a subsidiary of Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN), in which Arison Holdings owns 57%.
The project is important for Housing and Construction, which lost 60% of its market cap last year. The share rose 6.4% by midday today to NIS 2.94, giving a market cap of NIS 1.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2009
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