OPC a subsidiary of the Ofer Group won the only IPP tender in Israel to construct a private power plant, at Mishor Rotem which will generate natural gas. As per the terms of the tender agreement, IEC is to pay OPC 49.5 shekels per MWh of net installed capacity. In September 2009, Israel Corp board of directors has approved the purchaser of 80% of the shares of OPC which is due to set up a CCGT IPP at Mishor Rotem. Israel Corp. will receive the OPC shares at no cost, but will assume the company’s owners’ loan of NIS 15.5-16.5 million. The Consumer Price Index (CPI) linked loan bears 4% annual interest. The cost of the planned Mishor Rotem power station is estimated at $300-400 million, of which OPC is due to put up 20% from shareholders’ equity. This means that Israel Corp. will inject about $50 million in the project. In 2003, OPC won the tender to build and operate the 400-megawatt natural gas-driven Mishor Rotem IPP. The tender was published in 2001 by the inter-ministerial committee of the MNI and the Ministry of Finance. The power station is due to come on line in 2013 and will sell the electricity to the national grid. In a separate deal, Veolia Environment subsidiary Dalkia Energy Systems Ltd. is due to acquire the other 20% stake in OPC from Siemens AG. After years of delay, an agreement was finally agreed between OPC and the State that the IPP would be constructed based on the original terms in the tender. In November 2009 IEC and OPC signed a PPA agreement according to which OPC will be selling electricity to IEC for approximately 500 million shekels a year. This is the first PPA signed between an IPP and IEC. OPC also intends selling electricity to end consumers. The CEO of the project is Giora Almogy.
South Korea’s Daewoo Corporation has won a tender to construct a power plant for OPC Power Ltd., owned by Israel Corp (80%) and Veolia Environment (20%). Japan’s Mitsubishi Power Systems will supply the natural gas turbines and carry out the maintenance works. The contracts are worth an estimated $470 million. Construction of the 440-megawatt power station at Mishor Rotem will begin in 2010, and it is due to come on line in December 2012.