Israel Corporation (TASE: ILCO) unit IC Power announced today that it is expanding its electricity production activities in South America.
The company notified the Tel Aviv Stock Exchange (TASE) this morning that its subsidiary Kallpa Generaction, in which it holds a 75% stake, was last week awarded the Peruvian government tender to build a dual-fuel open cycle power station (natural gas and diesel) that will support the country's grid. In the first stage the station will operate on diesel.
The agreement with the Peruvian government is for 20 years and is worth $1 billion, and the cost of building the power station is $380 million. The power station will be near Mollendo in the Arequipa region. When the power station is linked up to natural gas, the company will be permitted to sell the electricity produced on the private market.
Completion of construction of the power station is scheduled for May 2016 and production capacity will be 593 Megawatt.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2013
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