Shikun & Binui has signed an agreement under which the Noy Fund and the TSK Group will replace Abengoa for the building of the NIS 4B Ashalim thermo-solar power plant in Israel.
Shikun & Binui will continue to hold 50% of the concessionaire, while the remaining 50%, will be held by the Noy Fund and the TSK Group, with 40% held by the Noy Fund and 10% by the TSK Group. In addition, the TSK Group will hold 32.5% of the project's building contractor. Based on the agreement, Shikun & Binui's holdings in the project's general contractor will increase to 67.5%.
Both the Noy Fund and the TSK Group will assume, each according to its relative holding, all of the rights and responsibilities previously borne by Abengoa as a shareholder in the concessionaire, the building contractor and the operating contractor. Abengoa will continue to serve as one of the project's sub-contractors in a limited capacity.
Completion of the deal is contingent upon receipt of the required approvals from the Israeli government and financing entities.
As previously reported, the project will continue to move ahead in line with its original timetable with completion expected in 2018, as initially planned.
The project has been financed by a consortium of Israeli and international banks, including the American Overseas Private Investment Corporation (OPIC), the European Investment Bank (EIB), Israel's Bank Leumi and Israel's Bank Hapoalim.
The total cost of the Ashalim Power Station will be approximately USD 1.1 billion. The plant is expected to have a total generating capacity of 110 MW, making it one of the largest thermo-solar power plants globally. All of the electricity will be sold to the Israel Electric Company under a 25-year agreement that begins as soon as the plant becomes operational.
The plant will base its power generation on thermo-solar technology, a process through which the sun's rays are concentrated to create large quantities of thermal energy (heat), which in turn power turbines which generate electricity. The plant will employ some of the world's most advanced technologies, including an energy storage facility that will enable electricity production to continue uninterrupted even during cloudy days and at night.