Noy Fund, TSK to take 50% in Israeli CSP project, Abengoa left behind

Shikun & Binui Ltd (TLV:SKBN) has picked the Noy Fund and Spain’s TSK Group to replace Abengoa (BME:ABG) for the construction of the 110-MW NIS 4B Ashalim solar thermal power plant in Israel.

The Israeli construction and infrastructure company will sell a 40% stake in the project to the Noy Fund and a 10% interest to TSK, while keeping the remaining 50%. TSK will also hold a 32.5% interest in the project's building contractor.

The two new participants will assume the rights and responsibilities previously borne by Abengoa, which will continue to act as a subcontractor in a limited capacity, Shikun & Binui said on Monday.

The stake sale is pending approvals from local government and financing entities.

The total cost of the Ashalim project, which also includes energy storage capacity, is calculated at about USD 1.1 billion (EUR 976m). It has been financed by a group of local and foreign lenders such as the US Overseas Private Investment Corporation (OPIC), the European Investment Bank (EIB), Israel's Bank Leumi and Bank Hapoalim.

Once completed, which is planned to happen in 2018, the solar thermal power plant will be selling its output to the Israel Electric Company under a 25-year contract.

(USD 1.0 = EUR 0.888)

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