Israel Corp unit wins $1.1b Peru electricity deal

Inkia won a tender to supply 200 megawatts from new hydroelectric plants.

Israel Corporation (TASE: ILCO) wholly-owned subsidiary Inkia Energy Ltd. has signed a $1.12 billion power purchasing agreement in Peru. Inkia won a tender to supply 200 megawatts a year of electricity for 15 years from new hydroelectric plants to a government-owned electric company.

Deliveries of electricity are due to begin in second half of 2015.

Israel Corp. said that winning the tender paves the way for the construction of the $750 million, 400-megawatt Cerro del Aguila hydroelectric project. Inkia owns several power companies in Latin America and the Caribbean, including two companies in Peru: 75% of Kallpa Generacion SA, the country's fifth largest power company, and 14.3% of Edegel SA (LIMA: EDEGEL), the country's largest power company.

Inkia's units generate a third of Peru's electricity. Edegel has seven hydroelectric power stations and seven natural gas-driven power stations generating 1,700 megawatts altogether.

Israel Corp's share price rose 2.4% by early afternoon to NIS 4,094, giving a market cap of NIS 30.8 billion.

Published by Globes [online], Israel business news - - on March 27, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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