AIRPORT CITY, Israel, April 25, 2016 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today 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.
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.
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.
About the Shikun & Binui Group
The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy; 6) concessions; and 7) water. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.
This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter - "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.
It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.
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SOURCE Shikun & Binui