Israel Electric to forgo most of Egyptian debt

Yiftah Ron-Tal, IEC chairman, photo: IEC PR

IEC has agreed to receive only $500 million out of the $1.8 billion awarded in arbitration from Egyptian gas companies.

Israel Electric Corporation (IEC) (TASE: ELEC.B22) has confirmed yesterday's report in "Globes" that its board of directors has agreed to forgo most of the money that was awarded to it in Swiss arbitration proceedings from Egyptian gas companies EGPC and EGAS.

IEC notified the Tel Aviv Stock Exchange (TASE) today that it is in "very advanced negotiations for a settlement" to receive $500 million from the Egyptian gas companies. $60 million will be paid on the signing of the agreement and the remainder over 8.5 years with guarantees from an Egyptian bank.

In fact in 2015 the Swiss arbitrators awarded IEC $1.8 billion from EGPC and EGAS for non-supply of gas from 2011 onwards after the pipeline in the Sinai was repeatedly sabotaged.

However, Government Companies Authority manager Yaakov Kvint has written to IEC chairman Yiftah Ron Tal demanding that the company reconsider the matter when taking into account that the consumer will have to foot the bill for the money not collected by IEC from the Egyptians.

Any IEC agreement with the Egyptians will have to be approved by the Israel Public Utilities (Electricity) Authority, which protects consumer interests.

Published by Globes, Israel business news - en.globes.co.il - on April 2, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Yiftah Ron-Tal, IEC chairman, photo: IEC PR
Yiftah Ron-Tal, IEC chairman, photo: IEC PR
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