The tender consists of two BOT projects to set up two 80 to 110 MW thermo-solar power plants at Ashelim in the Negev each on 4,500 dunam of land. The tender was published in March 2008. 7 companies passed the P.Q phase of the project. The credit rating agency Diroog gave the projects a credit rating of A1 (for the construction period) and Aa3 (for the operation period). The government will allow bidders in the Ashelim thermosolar power plant tender to use diesel as back-up for natural gas for the operation of the power plant. The tenders’ committee, chaired by deputy accountant general Avi Dor, has notified the bidders to this effect. The concession means that the government acceded to the bidders’ concerns that a breakdown in natural gas deliveries to the power plant could affect its profitability. The decision sets a precedent for other tenders for the construction of solar energy plants. Until now, the government has allowed only conventional power plants to use diesel as back-up for natural gas. The Ashelim tender allows the thermosolar power plant to use natural gas to generate up to 15% of its electricity output, with a 50% daily restriction. The bidders warned that in the event of a breakdown in the natural gas pipeline and supplies to the power plant, they could be exposed to tens of millions of shekels in losses over the franchise period.

In February 2010, MNI Minister Uzi Landau announced that the European Investment Bank would double its initial €50 million investment in the Ashalim renewable energy power plant to €100 million. The plant will open its first tender at the end of April and is slated to begin operation at the end of 2014. The power plant in the western Negev will comprise two solar thermal power stations, each with a capacity of about 120MW, with a maximum installed capacity of about 250MW. The estimated cost of the project is $750 million. The project will also include a photovoltaic (PV) power plant with an approximate installed capacity of 15MW, with a provision to expand it by a further 15MW to bring it up to a possible 30MW PV power plant.

The inter-ministerial tenders committee for the Ashelim thermosolar power stations published on July 12th 2010 updated tender documents for the financing, construction, operation, and maintenance of the two plants. The tender is jointly published by the Ministry of Finance, Ministry of National Infrastructures, and the Public Utilities Authority (Electricity). The final updated documents revised some sections in response to comments by the bidders. The changes included improving the compensation mechanism for the franchisee, changing the mechanism of fines for the non-delivery of electricity, extending the construction timetable, and stipulating that the state will be responsible for handling the national outline plan for the project. The new documents also clarify the arbitration mechanism for the project and the work plan with regulations and criteria published by the Public Utilities Authority. The Ashelim project will include two thermosolar power plants. The tenders committee postponed the deadlines for submitting bids for area A to September 15, and the deadline for area B to November 2.

In April 25 2016, Shikun & Binui will continue to hold 50% of the Concessionaire, while the remaining 50%, will be held by the Noy Fund and the TSK Group, with 40% held by the Noy Fund and 10% by the TSK Group. In addition, the TSK Group will hold 32.5% of the project’s Building Contractor. TSK is a global group with significant experience in the building and operation of large engineering and infrastructure projects, and is a world leader in the field of thermo-solar energy installations. Based on the agreement, Shikun & Binui’s holdings in the project’s General Contractor
will increase to 67.5%.

Both the Noy Fund and the TSK Group will assume, each according to its relative holding, all of the rights and responsibilities previously borne by Abengoa (as defined in the project’s agreements, including the Financial Closing Agreement) as a shareholder in the Concessionaire, the Building Contractor and the Operating Contractor. Abengoa will continue to serve as one of the project’s sub-contractors in a limited capacity.

Shikun & Binui, a global construction and infrastructure company headquartered in Israel, announced that it has signed an agreement under which the Noy Fund and the TSK Group will replace Abengoa for the building of the NIS 4B Ashalim thermo-solar power plant in Israel.

Completion of the deal is contingent upon receipt of the required approvals from the Israeli government and financing entities.

As previously reported, the project will continue to move ahead in line with its original timetable with completion expected in 2018, as initially planned.

The project has been financed by a consortium of Israeli and international banks, including the American Overseas Private Investment Corporation (OPIC), the European Investment Bank (EIB), Israel’s Bank Leumi and Israel’s Bank Hapoalim.

The total cost of the Ashalim Power Station will be approximately USD 1.1 billion. The plant is expected to have a total generating capacity of 110 MW, making it one of the largest thermo-solar power plants globally. All of the electricity will be sold to the Israel Electric Company under a 25-year agreement that begins as soon as the plant becomes operational.

The plant will base its power generation on thermo-solar technology, a process through which the sun’s rays are concentrated to create large quantities of thermal energy (heat), which in turn power turbines which generate electricity. The plant will employ some of the world’s most advanced technologies, including an energy storage facility that will enable electricity production to continue uninterrupted even during cloudy days and at night.
In addition to increasing the quantity of power generated from a clean and renewable source, the project will make a significant positive economic impact on Israel’s Negev region. During the construction phase, the project will employ hundreds of engineers, technicians, construction workers and service providers.

During the plant’s 25-year operational phase, the facility will provide direct employment for tens of team workers as well as indirect support for tens of local suppliers and service providers.