Sources inform "Globes," that a report submitted to the Israel Electric Corporation by the UK external auditor Northcroft has found that the cost of setting up a power station as part of the electricity grid's emergency plan was far more expensive than comparable projects overseas.
The report indicates that the price paid by the IEC for setting up the gas turbines at Ramat Hovav was significantly higher than is acceptable elsewhere in the world. The cost of the Ramat Hovav turbine amounted to $206 million compared with $107 million for similar projects overseas a gap of $100 million.
Northcroft examined, among other things, the procedures for setting up the natural gas power station in Haifa, placing the gas turbines at Ramat Hovav and the establishment of a substation near Karmiel. The audit compared the prices paid by IEC with similar projects overseas.
This was the first time that IEC had hired external auditors to investigate the cost of its projects, following criticism in the past regarding inefficiencies in the company's investments.
Regarding the project in Haifa, the report found that the cost of the project was 13% higher than similar projects in other countries.
Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2009
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