Sources inform “Globes” that the Eilat municipality, the Eilat Economic Development Corporation, and a number of companies and businesspeople will invest $50 million in constructing a local 50-megawatt power station in Eilat.
The power plant will supply cheap electricity, mostly to large consumers and hotel chains in Eilat. The group is considering the purchase of natural gas from Egypt or Jordan to operate the station. Adv. Gidi Freishtick, who represents the entrepreneurs, confirmed the report.
The plant will provide an alternative source of electricity at lower prices than those charged by the Israel Electric Corporation. The electricity will be offered to a consumers union being formed in the town.
Partners in the venture include the Eilat municipality, the Eilat Economic Development Corp., a company owned by former Prime Minister’s Office deputy director general Alex Goldengoren, and a company owned by Nissan Caspi CPA and Alon Zand.
The entrepreneurs said that in order to avoid a situation in which the power station would be unable to meet the demand, they planned to consider purchasing electricity from private producers in Israel, who would transport it to Eilat, or from electricity producers in Aqaba or Taba.
Published by Globes [online] - www.globes.co.il - on March 3, 2005