Sources inform ''Globes'' that private power producer Dorad Energy Ltd. is liable to lose its NIS 1.5 billion power purchasing agreement with the Ministry of Defense, unless the company secures financing to build its planned power station by next month. The contract has been extended several times because of delays in building the power station, but it appears that the company will find it more difficult to get another extension, because more private power producers are entering the market.
Dorad and the Ministry of Defense signed the agreement in 2004, under which the ministry was to buy 200 megawatts of electricity a year, beginning in 2008. However, Dorad has not been able to build the power station in Ashkelon because it has failed to secure the necessary financing.
The Ministry of Defense has in the past considered cancelling Dorad's contract, but extended it instead, because Dorad had no competitors.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010