Veolia Environnement SA (NYSE: VE; Euronext: VIE) sub-subsidiary Dalkia Israel Ltd. is expected to participate in a government tender for cutting energy use at government hospitals. This is the first project of its kind in Israel. Israel’s energy savings services market is estimated at NIS 1.5 billion, and is expected to grow with the switch to natural gas for generating electricity.
The Ministries of Health and National Infrastructures are due to publish a tender for cutting energy use at government hospitals sometime in the next quarter. The ministries asked Israeli and international companies for requests for proposals for cutting electricity consumption at government hospitals by 10%. These hospitals current aggregate electricity bill is NIS 110 million a year.
The government also wants to review the possibility of building natural gas-driven cogeneration electricity plants at hospitals, or alternatively, to buy electricity from private producers.
Delkia International SA, a provider of energy services in Europe, is the first international company that has showed an interest in this project. It acquired Calorit Sharon three years ago, which became Dalkia Israel. Dalkia Israel has carried out hundreds of projects for Israeli companies, banks, hotels, and government agencies.
Published by Globes [online], Israel business news - www.globes.co.il - on April 22, 2007
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