Israel Corporation (TASE: ILCO) subsidiary OPC Rotem Ltd. yesterday signed a turn-key contract with South Korea's Daewoo International Corporation (KSX: 47050) to build the 440-megawatt Rotem Power Station.
OPC also signed a contract with Japan's Mitsubishi Heavy Industries Ltd. (TSE: 7011) to maintain the Rotem Power Station for 12 years after it comes online.
The cost of the two contracts is $440 million.
Daewoo undertook to complete construction of the combined cycle power station by December 2012. The start of construction depends on OPC obtaining building permits and a start of work order. It believes that construction can begin late this year.
Israel Corp. plans to finance construction from equity, together with loans from financial institutions. Israel Corp. owns 80% of OPC.
Israel Corp.'s share price rose 1.3% in early trading to NIS 2655.
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010