Ludan Engineering Co. Ltd. (TASE: LUDN) subsidiary Ludan Energy Overseas Ltd. and Dutch company Agro Giethoorn Energy BV will jointly build a two-megawatt biogas power plant in the Netherlands. Ludan will own 40% of the project.
Another Ludan subsidiary, Ludan Renewable Energy BV signed a €4.9 million contracting services contract with the partners to build the plant. Construction will take eight months.
Ludan Energy and Agro Giethoorn Energy have a 12-year franchise to operate the plant at guaranteed and subsidized rates.
The Dutch government will provide a €500,000 loan to finance the project, and a Dutch bank will provide a €3.75 million long-term loan and a €450,000 credit line, and the companies' owners will provide a €1.25 million owners' loan proportionate to their holdings in the plant.
Ludan's share price rose 1.8% today to NIS 4.99, giving a market cap of NIS 57 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 13, 2011
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