Construction is expected to be completed by the end of 2012.
The heads of Delek Group Ltd. (TASE:DLEKG), its subsidiary Delek Infrastructure Ltd. and Tnuva Food industries Ltd. last night signed an agreement to build and operate a private power plant, which will provide electricity and steam for Tnuva's factory in Alon Tavor.
Delek unit IPP Delek Alon Tavor td. will build a 55 megawatt cogeneration power plant for Tnuva's Alon Tavor dairy.
The agreement sets out that the operating period will be 27 years from when financial arrangements are agreed, and not later than April 2011. Construction of the power plant is expected to be completed by the end of 2012 at an estimated cost of construction for Delek Group to be $63 million.
Use of natural gas indicates synergy between the Delek Group's subsidiaries and it is reasonable to assume that one of Delek's gas companies will benefit from a gas supply contract as part of the deal.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009