Subscribe to Print Edition | Mon., September 08, 2008 Elul 8, 5768 | | Israel Time: 02:22 (EST+7)
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And Turkey makes eight?
By Avi Bar-Eli
Tags: Israel, negev, solar power 

As reported in TheMarker last week, seven groups reached the presorting stage on Tuesday to build a solar power production facility at Ashalim, in the Negev. According to new information obtained by TheMarker, it appears that an eighth contender is also in the running. Three hours after the 2 P.M. closing time, the Turkish energy concern Zorlu handed in its bid.

Zorlu was initially part of a group put together by the Israeli branch of Babcock & Brown Capital of Australia, which also included the Spanish energy company Elecnor.

But a week before last Tuesday's deadline the Aussie private equity vehicle announced plans to close its Israeli office, in light of the financial hardships faced by the parent firm, and the consortium broke up.
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Elecnor pulled out, but Zorlu decided to go it alone. The Turkish company owns 25% of Dorad Energy's Ashkelon power plant project.

Sources close to Zorlu point the finger of blame for the tardiness on the cancelation of the Turkish Airlines flight from Istanbul that was to have brought a notarized document that was a mandatory part of the bid package. They say the scramble for alternate transportation for the precious papers caused the critical delay.

TheMarker has learned that Zorlu has already filed an official request to the tenders committee, asking that it take the circumstances of the delay into consideration and not reject its bid for that reason.

The request came with a reminder that since Turkey and Israel have a reciprocal agreement over the participation of private companies in each others' government tenders, Zorlu's bid should be considered in light of the strategic partnership between the two countries.

It's hard to hear about this without recalling the trouble Israeli businessman Sammy Ofer got into when he went after Turkish state tenders during the past several years, not to mention Zorlu's own request that OPC, the group controlled by the Ofer family, be disqualified from winning the tender to build a private power plant.

The Ofers are contending for the solar plant tender via the Israel Corporation subsidiary IC Green Energy.

Speaking about that private generating plant, over the weekend Dorad Energy - yes, the same company that is partly owned by Zorlu - withdrew its High Court of Justice petition against the construction of the competing OPC power plant in the Negev's Mishor Rotem region, thus paving the way for the building of the 370MW plant.

On another energy note: It's now official, in case you couldn't guess. The best area for catching rays and turning them into juice in Israel is the one between Yerucham and Mitzpe Ramon.
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