The Israel Electric Corporation (IEC) (TASE: ELEC.B22) board of directors recently approved the company's participation in a tender for the design and supervision of the construction of two power stations in Mexico. If IEC wins the tender, it will be a subcontractor of a Spanish company. IEC is now waiting for approval of its bid from the Ministry of National Infrastructure, Energy, and Water Resources and the Government Companies Authority.
This is not IEC's first attempt to take part in a project outside Israel's borders. Last March the company signed a document of intent with Indian government company Hindustan Salts for providing expertise in the development and implementation of an 8,000-megawatt solar energy project in India. In 2012, IEC tried to promote a major solar energy project in Bulgaria, and to become a partner in a huge $1.3 billion solar venture in China. As of now, nothing has come of these projects.
IEC said, "As a national government company with a business orientation, IEC is looking for additional revenue sources in Israel and overseas, based on the experience, know-how, and professionalism it has accumulated in past decades, among other things in the construction of power stations and other areas, without detracting from its business in Israel."
Sources inform "Globes" that despite the retirement agreement on its agenda, IEC has decided to hire 200 temporary workers. The negotiations for the retirement agreement, which are in preparation for a reform in the company, and involve retirement of 400 company employees and granting tenure to 190-200 temporary employees, broke up after Ministry of Finance Wage Department head Kobi Amsalem said he would sign the agreement only if it was final, meaning that the workers would not be permitted to go on strike over the terms of the agreement. IEC workers committee chairman Miki Zarfati, refused, and the negotiations stalled.
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2015
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