Africa-Israel Investments Ltd. (TASE:AFIL) has signed a NIS 700 million power purchasing agreement with independent power producer Dorad Energy Ltd. Africa-Israel will buy 32 megawatts of electricity over ten years.
Africa-Israel estimates that the contract with Dorad will result in large savings on its electricity bill compared with the prices it pays to Israel Electric Corporation (IEC) (TASE: ELEC.B22)
Dorad VP marketing Yael Lahav said Africa-Israel strengthens Dorad's customer mix, which includes Mekorot National Water Company, the Ministry of Defense, and hotel chains Fattal Hotel Management Ltd. and Isrotel Ltd. (TASE: ISRO), and food companies Strauss Group Ltd. (TASE:STRS) and Osem Investments Ltd. (TASE: OSEM). The new contract increases Dorad's electricity contracts to 600 megawatts out of its 840-megawatt capacity.
Dorad is due to complete construction of its NIS 4 billion power station in the fourth quarter of 2013. Eilat-Ashkelon Pipeline Company Ltd. (EAPC) owns 37.5% of Dorad, Turkish conglomerate Zorlu Endustriyal ve Enerji Tesisleri Insaat Tie AT (which is building the project) owns 25%, Adeltech Ltd. unit Adelcom Ltd. owns 18.75%, and Dori Group Ltd. (TASE: DORI) owns 18.75%. EAPC subsidiary Eilat-Ashekelon Infrastructure Services Ltd. will operate and maintain the power station when it comes on line, and Zorlu Operations and Maintenance will be responsible for heavy maintenance of the power station's natural gas turbines.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012