The company was granted a license to build a 300-MW pumped storage power plant.
Kardan NV (TASE: KRNV;AEX:KARD) subsidiary Tahal Water Energy Ltd. has been granted a conditional license from the Ministry of National Infrastructures to build a 300-megawatt pumped storage power plant at Kochav Hayarden in the Jordan valley at an investment of €225 million. The company will sell the electricity to Israel Electric Corporation (IEC) (TASE: ELEC.B22).
Kardan estimates that construction will take three years. The license is conditional on Tahal arranging financing for the project within 18 months from the date the license was granted. Tahal has an option to withdraw from the project if the estimated turnover is not in line with current projections, depending on the final terms to be set by the Israel Electricity Authority.
Kardan owns 81% of Tahal Water Energy through Tahal International Group BV.
Kardan's share rose 1.8% at the opening on the Amsterdam Exchange to €2.70. The share rose 4.4% in early trading on the TASE to NIS 14.90.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2009
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