IEC cancels Eshkol power station tender

Eshkol Power Station  credit: Yossi Weiss, Israel Electric Corporation
Eshkol Power Station credit: Yossi Weiss, Israel Electric Corporation

The Israel Electric Corp. has launched a pricing procedure for offers of NIS 9 billion or above.

Israel Electric Corp. (IEC) has canceled the Eshkol Power station tender and announced a pricing procedure. Last month Eshkol Power Energies, a consortium of Dalia Energy Companies (TASE: DALIA) and Ta'avura won the tender with a huge bid of NIS 12.4 billion, far more than the NIS 7 billion bid by under-bidder OPC Energy (TASE: OPCE) - Noy Fund. IEC is confiscating the NIS 100 million guarantees put up by the tender winners.

But the tender winners were unable to obtain financing for the project and Ta'avura left the consortium. Dalia lowered its bid to NIS 9 billion and said it would increase its guarantees to NIS 200 million.

IEC now says that the pricing procedure will begin at NIS 9 billion. The decision by the IEC's Tenders Committee stems, in part, from the understanding that agreeing to negotiate with Dalia alone could be problematic and not pass the court's test - especially when, as first published by Globes, the OPC-Noy Fund consortium plans petitioning for a restraining order. However, even now, simply canceling the tender may not be enough to prevent the petition.

The Eshkol power station is the largest in Israel fueled by natural gas, with an installed capacity of 1,693 megawatts. It is the most important of the IEC power stations to undergo privatization, after the sales of the Ramat Hovav and Hagit East plants to Shikun & Binui and Edeltech for NIS 4.25 billion and NIS 1.6 billion respectively, and of the Alon Tavor plant, sold for NIS 1.9 billion to the MRC group.

The fifth is the Reading power station in Tel Aviv, which awaits a government decision on its future.

The Eshkol power station site covers 440 dunams (110 acres) of privately-owned land, sufficient for considerable development, including construction of the planned Eshkol 2 power plant and extensive energy storage capacity. Moreover, after the government’s decision to promote a maritime power cable along the coast from Ashkelon to Tel Aviv, the Eshkol power station has great potential.

Published by Globes, Israel business news - en.globes.co.il - on July 19, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Eshkol Power Station  credit: Yossi Weiss, Israel Electric Corporation
Eshkol Power Station credit: Yossi Weiss, Israel Electric Corporation
DeepSeek credit: Reuters/VCG Wiz finds serious information leak at DeepSeek

The Chinese AI application that has taken the world by storm had a sensitive database exposed to anyone on the Internet.

US spec Mazda 3  credit: PR Tough EU regulations removing popular cars from Israel

New safety standards and average emission rules are making manufacturers drop models, or switch to US and Canadian standards for the Israeli market.

Amnon Shashua  credit: Yonatan Hefner Mobileye falls on disappointing 2025 guidance

The Israeli advanced driving assistance systems company predicts revenue of $1.69-1.81 billion in 2025, below the analysts' forecast of $1.96 billion.

Trophy protection system installed on Israeli tank credit: Rafael spokesperson Rafael adapts Trophy tank protection system for aerial threats

Trophy can now not only thwart anti-tank missiles but also low-flying aerial threats including helicopters and drones, the "Bulgarian Military" website reports.

Gasoline prices credit: Tali Bogdanovsky Gasoline prices in Israel to rise Saturday night

The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will rise on Saturday at midnight February 2, 2025, by NIS 0.11 per liter to NIS 7.31 per liter, the Ministry of Energy and Infrastructure has announced.

Gil Shwed and Nadav Zafrir credit: Menash Cohen Check Point beats analysts in Q4 with strong growth

New CEO Nadav Zafrir: Check Point’s future is bright, and we are focused on driving market share expansion and taking growth to the next levels.

Air India credit: Shutterstock Air India to inaugurate Tel Aviv-Mumbai route

The announcement comes a week after Air India said it would resume Tel Aviv-Delhi flights in March.

Guardknox founders Photo: Tom Bergman Car cybersecurity co GuardKnox seeks court protection

The Israeli startup, which has raised $60 million, has ongoing liabilities of NIS 11 million that it will struggle to repay without legal arrangements.

Paragon founders credit: PR Paragon sale completed before Defense Ministry approval

US private equity firm AE Industrial Partners has already paid $900 million for Israeli cyberattack company Paragon, even though the Defense Ministry is still examining the deal.

Iron Beam credit: Ministry of Defense spokesperson Israel's Iron Beam set for deployment this year

Rafael chairman Yuval Steinitz told US website "National Defense" that the laser air defense system is continuing to improve its range.

Israel Bar Association chairperson Adv. Amit Becher credit: Noam Moskowitz, Knesset Spokesperson's Office Israel Bar Association under siege

The lawyers' association sees legislation to weaken it, and ultimately abolish it, as revenge for its stance against the government's judicial overhaul program.

Cybersecurity credit: Shutterstock Tenable acquires Israeli co Vulcan Cyber

This is the US data security company's third acquisition in Israel over the past five years.

Teva CEO Richard Francis credit: Elad Malka Teva falls sharply on disappointing 2025 guidance

The Israeli pharmaceuticals company reported strong fourth quarter results but its 2025 outlook did not meet expectations.

UVeye founders Ohad and Amir Hever credit: Yuval Chen Israeli AI vehicle inspection co UVeye raises $191m

UVeye’s systems, which are an “MRI for vehicles,” deliver precise, data-driven insights by scanning all visible vehicle components in a matter of seconds.

Beny Steinmetz credit: Reuters Denis Balibouse Greek court orders extradition of Beny Steinmetz to Romania

Steinmetz's lawyer Stavros Togias insists that the Athens court's decision contradicts a previous decision made by the court in 2022.

Shekel credit: Shutterstock Vladirina 32 Analysts see pay rises pushing inflation higher

A very tight labor market is creating upward pressure on wages that could upset the Bank of Israel's inflation projections.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018