A consortium including China's Sinohydro Corp. and General Electric has signed an agreement with developer Star Pumped Storage Ltd. For the construction of a 340 MW pumped-storage hydroelectric plant in Israel.
The deal, announced by Tahal Consulting Engineers Ltd., which owns a 40.5% state in Star Pumped Storage Ltd., is a turnkey engineering, construction and procurement contract worth about US$443.6 million.
The partners also signed a separate 18-year deal with GE Renewable Energy Ltd. Worth $4.2 million annually for Gilbao's operation and maintenance.
Pending approval from the banks financing the project, Tahal said it expects main construction of the plant by the end of this year with work to require about 52 months to complete.
Tahal, a subsidiary of Amsterdam-based infrastructure group Kardan N.V., said it ultimately intends to sell its shares in the project to better focus on other areas, but that it expects revenues from the plant to increase by $52 million through the first 18 years of its operation.
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