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Four Groups Submit Bids in Tender for the Construction of the Photovoltaic Power Plant in Ashalim

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Sunday, September 25th, 2011

Four bids have been submitted to the Inter-Ministerial Tenders Committee for the
construction of a 30 megawatt photovoltaic technology-based power plant in
Ashalim, which is located in the Ramat Negev Regional Council. The groups, which
are some of the leaders in the field of solar infrastructures and technology, include the
French electric company EDF, Shikun Ubinui in cooperation with Sun Power,
Granit Hacarmel in cooperation with Siemens and Clal Energy together with
Sun Edison.
In addition, the Inter-Ministerial Tenders Committee for the Construction of the Solar
Power Plants in Ashalim today informed the Megalim Solar Power Group, which
submitted a bid for the construction of the thermo solar power plant in Plot B, that
after completion of the examination of the technical and financial parts of its bid, the
price quote envelope was opened, thereby completing the examination of the bid as a
whole. The Tenders Committee informed the Megalim Group, whose shareholders
are Brightsource and Alstom, that the bid, as it was submitted, is significantly high.
Therefore, the Committee announced that it was rejecting the bid. The Tenders
Committee is expected to invite the Megalim Group to a meeting, after which the
Committee will decide on its future steps.

The project comprises three tenders that include the construction of two thermo solar
technology power plants and one photovoltaic technology power plant in the Ashalim
region, with a total capacity of 250 MW. The tenders are BOT tenders, with the
winner being required to finance, build, operate and maintain the power plant
throughout a franchise period of around 27 years (including the construction period),
and then transfer it to the State. The entire project is intended to supply
approximately 2% of the economy’s electricity production and constitutes a genuine
milestone in terms of meeting the government’s goal, whereby by the year 2020, 10%
of the electricity production will be from renewable energy sources.
The Tenders Committee comprises representatives from the Finance Ministry, the
Ministry of National Infrastructures and the Public Utilities Authority – Electricity.
The tender is being coordinated by the Division of Projects in Cooperation with the
Private Sector at Inbal Ltd.