The Ministry of Finance is apparently opposed to the Ministry of National Infrastructures' plan to publish a new tender for the building of a power plant at Ramat Hovav. Finance Ministry director general Yarom Ariav indicated the ministry's objections in a letter to Minister of National Infrastructures Benjamin Ben-Eliezer and director general Hezi Kugler.
The Infrastructures Ministry has called for the publication of a new tender for the building of the power plant, in the face of the anticipated shortfall in electricity starting from 2009. Three years ago, the previous tender which was won by Ofer Brothers was cancelled, and the case is now being heard by the High Court of Justice. The Infrastructures Ministry has suggested that a new tender should now be published, and that grants should be offered to entrepreneurs interested in bidding.
In his letter Ariav said that the way to help private producers was by moving forward the removal of the barriers they face as previously agreed on by the Finance Ministry and all the relevant authorities in the energy economy.
Energy economy sources said that the letter amounted to a rejection of the Infrastructures Ministry proposal for a new tender for the power plant. After the previous tender failed, the authorities decided to issue licenses to private electricity producers instead of issuing tenders.
Published by Globes [online], Israel business news - www.globes.co.il - on May 21, 2007
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