turn of events: Electric Company cancels the purchase of the Eshkol power plant

In a significant turn of events, the Electric Company announced the cancellation of the tender for the purchase of the Eshkol power plant in Ashdod. The tender was a pivotal part of the government's ambitious plan to privatize the electricity sector, but it encountered unforeseen challenges.

During the bidding process, one of the bidders, the Dalia Group, put forward an impressive offer of over NIS 12 billion for the power station, surpassing all expectations. However, it was later revealed that the winning bidder was unable to fulfill the terms of the deal, creating an uncertain situation for the Electric Company.

After weeks of deliberation and legal examination, the Electric Company has decided to cancel the tender in its original format. Consequently, they will forfeit the NIS 100 million guarantee deposited by each participant and initiate a new bidding process. Only those who met the threshold conditions and submitted a guarantee during the initial tender will be eligible to participate in this revised bidding process.

The starting price for the new tender will be set at NIS 9 billion, providing an opportunity for qualified bidders to compete for the acquisition of the Eshkol power plant once again.

This decision marks a significant setback for the privatization plan in the electricity sector. However, the Electric Company aims to ensure a fair and transparent process in its efforts to find a suitable buyer for the Eshkol power plant and is determined to move forward with the revised bidding process to achieve this goal.