Siemens wins Beer Tuvia power plant tender

Siemens beat Alstom and Hyundai with an aggressively low bid, believed to be about $400 million, to build and operate the plant.

German industrial giant Siemens AG (XETRA: SIE) has won the tender to build and operate the independent IPM Beer Tuvia Power Plant Ltd. at Beer Tuvia, in the southern coastal plain. Sources inform "Globes" that Siemens beat France's Alstom SA (Euronext: ALO) and South Korea's Hyundai with an aggressive bid that was significantly lower than its rivals bids.

This is Siemens first-ever foray into Israel's independent electricity production sector and one of the only wins of a large tender by the company since the exposure of the affair in which Judge Dan Cohen was suspected of receiving bribes from the company for promoting projects with the Israel Electric Corporation (IEC) (TASE: ELEC.B22).

The size of Siemens bid is believed to be about $400 million and the entire project is worth NIS 2 billion.

The project will be built on a 60-dunam (15 acre) site belonging to IDB Holding Corp. Ltd. (TASE:IDBH) unit Bayside Land Corp. Ltd.(Gav Yam) (TASE: BYSD1). Estimates are than construction will take two years from when financing is secured.

IPM CEO Asaf Vitman told "Globes" "The energy plant that will be built at Beer Tuvia will be the most efficient of its kind in Israel due to the innovativeness of the technology that will be implemented."

Published by Globes [online], Israel business news - - on July 1, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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