IEC to compensate Ofer Brothers on power plant

Sources inform ''Globes'' that Israel Electric Corporation (IEC) (TASE: ELEC.B22) will refund Ofer Holdings Group subsidiary Ofer (Power Stations) Ltd. (OPC) NIS 30-40 million in compensation for infrastructure work performed on the site of the planned power station at Ramat Hovav in the Negev. IEC's board and audit committee have already approved the payment, after more than a year of negotiations.

IEC said in response, "IEC, at the advice of the Ministry of National Infrastructures, and with the approval in principle of the ILA has taken over the role of OPC. The ILA ordered IEC to bear the planning, licensing, development, fencing, protection, and other costs as a condition for obtaining the lease for the site. After long negotiations with OPC, which included a review of the costs, an agreement was signed for use of the land."

Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2009

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