Abengoa has closed, together with its partner the Israeli global infrastructure group Shikun & Binui Renewable Energy, the non-recourse project financing for Ashalim CSP plant. The total investment of the project will be approximately USD 1 billion.
The non-recourse project financing agreement combines financing from development financial institutions such as the Overseas Private Investment Corporation (OPIC) and the European Investment Bank (EIB); in addition to local commercial banks such as Bank Leumi and Bank Hapoalim. Ashalim will supply clean electricity to the Israel Electricity Corporation under a 25-year power purchase agreement (PPA) signed in late 2013.
Construction of Ashalim is expected to start before the end of July 2015 in Western Negev Desert in Israel, 35 km south of the city of Beer Sheva, close to the village of Ashalim, on an area designated by the Israeli authorities. The project is expected to create an average workforce of 633 jobs during construction, and about 60 people for plant operation and maintenance.