Enlight Renewable Energy Solutions Ltd. (TASE:ENLT), controlled by Shaul Elovitch, has signed an outline agreement with the Noy Infrastructure and Energy investment fund for an investment of up to NIS 80 million in the Halutziot project in the Western Negev. The Noy fund will initially invest in Enlight's project through a mezzanine loan, to be made available near the time of the financial closing, when that is achieved.

The loan will be granted to a limited partnership owned by Enlight. Later, after the financial closing, part of the loan will be converted to equity, with the fund becoming an owner of rights in the partnership. According to the announcement to the stock exchange, Enlight will retain most of the rights in the project. The signing of a full agreement is conditional on completion of due diligence, on the project becoming part of the Public Utilities Authority (Electricity) assured tariffs quota, and on finance being obtained for the project.

The Halutziot project is one of the largest solar energy projects planned in Israel. It will have a 55 megawatt capacity, and will be constructed on a 1,000 dunam (250 acre) site at Moshav Ohad. The project involves land sawps with three neighboring settlements, Naveh, Bnei Netzarim, and Dekel, with each settlement receiving 250 dunams in the project. Bnei Netzarim and Dekel are settlements populated by people evacuated from Gush Katif in the Gaza Strip.

Bank Leumi will provide initial financing of NIS 13.4 million. The project will cost an estimated NIS 500 million to construct, and Enlight expects gross receipts of NIS 1.6 billion from sales of power of Israel Electric Corporation over twenty years.

Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2013

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