JERUSALEM Dec 1 IC Power has won a government
tender worth $1 billion over 20 years to build a power plant in
Peru that will provide reserves for the national power grid, IC
Power's parent company Israel Corp said on Sunday.
Current power consumption in Peru is 5,500 megawatts and the
new plant will provide an additional 590 megawatts, Israel Corp
said. IC Power is involved in producing some 35 percent of
Peru's electricity, the company said.
Under the deal, IC Power will build the plant in Mollendo, a
town in southern Peru, by 2016. In the first stage, it will
produce 590 megawatts via diesel. In the second stage, once gas
capacity in Peru grows, it plans to sell the electricity to the
IC Power is in the middle of a hydro-electric project in
Peru set to be completed in 2016 and has already invested $350
million. The plant's planned output is 520 megawatts.
Israel Corp, through IC Power, also owns 21 percent of
Edegel, Peru's largest power generator.
Separately, Israel Corp said that Kallpa Generacion, which
is majority-owned by IC Power, had agreed to buy a natural
gas-powered power plant in Peru with a capacity of 193 megawatts
for $114 million, pending Peruvian anti-trust approval.
(Reporting by Steven Scheer; Editing by Mark Potter)