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Ormat Technologies Inc. says
its Israeli subsidiary, Ormat Systems Ltd., has signed a joint-venture
agreement with Sunday Energy Ltd., an Israel-based private company, to
develop, construct and operate solar-photovoltaic energy systems in
Israel with a total capacity of 36 MW.
Under the terms of the
agreement, Sunday Energy will contribute the rights to all of its
property and roofs required to develop solar energy systems above 1 MW
to special purpose entities (SPEs).
Ormat will own 70% of each
SPE and will also have control of it. Under the terms of the agreement,
Ormat and Sunday will act jointly as the engineering, procurement and
construction contractor and the operator of each project in accordance
with each company share in the SPEs.
The estimated capital
expenditure for 36 MW of solar power systems is approximately $195
million. The electricity generated from the projects will be sold to
Israel Electric Corp. Ltd. under a 20-year power purchase agreements
and will generate approximately $30 million in annual revenues. The
SPEs expect to finance their capital expenditure with 80% nonrecourse
project finance debt.
