Hebrew daily “Yediot Ahronot” reports that for the first time, Israel Electric Corporation (IEC) is about to lose one of its largest customers to a private electricity producer. Last week, the Ministry of Defense reportedly signed a contract with Dorad Energy to supply electricity. Dorad Energy is owned by Uri Dori Engineering Works Corp. (TASE:DORI), Delek Group (TASE:DLEKG) subsidiary Yam Thetis, and Dutch company Brabant Park. Dorad Energy plans to build an 800 Megawatt power station in Ashkelon.
Under the contract, Dorad Energy will supply most of the Ministry of Defense's electricity needs more cheaply than IEC, while the ministry has undertaken to procure its electricity needs exclusively from Dorad Energy.
The contract is for five years, with a five-year option. The IDF accounts for 2.5% of Israel's entire electricity consumption.
The Ministry of Defense stated, "The contract with Dorad for the future purchase of cheaper electricity covers most of the Ministry of Defense's electricity consumption. Under the contract, the Ministry of Defense reserves the right to sign small-scale agreements with another producer during the period of the contract."
Dorad signed a contract with a Turkish contractor 18 months ago to build the power station, which is scheduled to begin operating in less than two years. Doran is the first private electricity producer expected to operate in Israel, after Ofer Brothers cancelled plans to build a power station at Ramat Hovav.
Published by Globes [online] - www.globes.co.il - on July 26, 2004