Israel Electric approves Mid-Atlantic project

[Reuters]

JERUSALEM, May 9 (Reuter) - Israel Electric Corp's board of
directors has given the final approval to sign a private power
agreement with Mid-Atlantic <MRR.A>of the United States, the
Israeli company said on Thursday.
The cost of Israel's first large private power project is
$300 million.
Under the terms of the agreement, state-owned Israel
Electric will purchase electricity from a private power plant to
be built by Mid-Atlantic at Mishor Rotam in southern Israel.
The 150 megawatt power plant will run on shale located near
the site.
The agreement must still be formally signed by both
companies and Mid-Atlantic must arrange for financing.
``This is the first large private power project in Israel,''
said Gad Ya'acobi, Israel Electric board chairman.
A memorandum of understanding between the two companies was
signed last October during a visit to Israel by the late U.S.
Commerce Secretary Ron Brown.
In March, Israel's parliament approved a new electricity law
that allows 10 percent of all electricity production to be
supplied by private power producers.