Alon Tavor and Ramat Gabriel IPP projects

Overview:

• Delek Infrastructure is developing two private commercial IPP (independent power producer) power plants in Israeli industrial zones Alon Tavor and Ramat Gabriel. 
• The Alon Tavor IPP is being built to power Tnuva's dairy in the Jezreel Valley, the other will provide energy to the Nilit plastics factory in Ramat Gabriel. 
• Both IPPs will be gas-powered, combined-cycle power plants with a generation capacity of 70MW.
• Siemens has been awarded the turnkey contract for the projects - its first in Israel - and will supply the gas and steam turbines required for each plant. 
• Primary financing for the projects of around $250 million is being provided by Deutsche Bank and Mizrahi Tefahot Bank, and an additional mezzanine loan is being provided by Bank Lemui. 
• Sweden's export credit agency, Exportkreditnämnden, was also involved in the financing. 
• The projects are expected to be operational by 2018. 

Ben Naylor - Regional editor