ISRAEL CHEMICALS LTD IPP

Promoter – Financial Intermediary

ISRAEL CHEMICALS LTD

Location

• Israel

Description

Construction of a Combined Cycle Gas Turbine (CCGT) for Israel Chemicals Ltd's (ICL) own use. The plant will be fired by natural gas and located in Israel on ICL plant's premises in the Southern part of the Dead Sea.

Objectives

The project fulfills the Bank's external mandate objective to develop economic energy infrastructure as it will contribute to increased electricity production. It also fulfills the Bank's external mandate objective to develop the local private sector as it will support an Israeli private sector company. In addition, because of its expected efficiency and due to the usage of a low-carbon fuel, the CCGT plant's carbon intensity will be 50% lower than average carbon intensity of electricity in Israel and much lower than emissions from the current Heavy Fuel Oil-fired generator of the industrial site.

Comments

This operation is covered by the EU Political Risk Guarantee for EIB loans outside the EU.

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 354 million

Environmental aspects

The Environmental Impact Assessment for the project was completed in 2009 and it did not identify any significant negative residual impacts of the investment. The plant's construction is planned on a site next to the existing industrial plant and on land designated for industrial use, so it is expected that its environmental impact will be relatively limited for a project of this nature. The use of natural gas will result in significantly lower level of specific emissions than those resulting from the current use of Heavy Fuel Oil.

Procurement

The Bank will require the promoter to ensure that the project will be implemented in accordance with the Bank's Guide to Procurement.

Status

Signed - 17/12/2012