South Korea's Daewoo Corporation has won a tender to construct a power plant for OC Power Ltd., owned by Israel Corporation (TASE: ILCO) (80%) and Veolia Environnement SA (NYSE: VE; Euronext: VIE) (20%). Japan's Mitsubishi Power Systems Ltd. will supply the natural gas turbines. The contracts are worth an estimated $470 million.
Construction of the 440-megawatt power station at Mishor Rotem will begin later this year, and it is due to come on line in December 2012.
In a notice to the Tel Aviv Stock Exchange (TASE) today, Israel Corp. said that OPC has "an option to build another power station at the same price, if it is decided to build such a power station in Israel within the next 18 months."
Today's announced is in line with a "Globes" report from two months ago that Israel Corp. is seeking to expand production by its power plants to 1,200 megawatts, which would make it Israel's largest private power producer.
Israel Corp's share price fell 2.5% today to NIS 2,855.
Published by Globes [online], Israel business news - www.globes-online.com - on May 9, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010