Solgreen gave up winning a NIS 717 million tender and will be fined NIS 5 million by Investing.com

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| Dror Nir Castel, the real estate center

The board of directors of the green energy company Solgreen (TASE:), which is under the control of Generation Capital (TASE:), decided to waive the company’s right to exercise its winning at the beginning of this month in a tender to establish a solar project in Ramat Hovav. The tender was published by the Israel Land Authority (Israeli Land Authority), and is worth NIS 717 million.

According to the company, the decision stems from the corresponding winning of the land tender in Ramat Beka, “due to the company’s need to focus its administrative, operational and financial efforts on promoting the work plan and the long-term strategic plan”.

Solgreen continues to promote processes that will enable the realization of its win in the Ramat Bekaa tender, which it won for NIS 31 million, including the promotion of statutory processes and the promotion of a process to finance the first payment that the company is required to pay – 20% of the amount of its bid in the tender through bank debt.

Due to relinquishing the land in Ramat Hovav, Solgreen will pay a fine of NIS 5 million to Rami, and it is not clear whether Rami will take legal action. At the same time, the company’s board of directors approved the appointment of Dror Sharon as CEO, subject to the approval of the company’s general meeting.

Solgreen won two tenders for the lease of land amounting to 2,800 dunams in Neot Hovav and Ramat Beka. According to the company’s announcement upon winning, it intended to establish projects on the land with a total capacity of 520 megawatts, plus storage batteries with a capacity of 940 megawatts.

Each of the tenders included an area of ​​1,400 dunams, and the construction date is until 2026. According to Solgreen’s announcement, the construction cost of each project is NIS 820 million, and each of them was supposed to yield an EBITDA (profit before taxes, interest and depreciation) of NIS 200 million.

Generation Capital informed Solgreen that at its request, it would provide it with a loan of NIS 100 million that does not bear interest or linkage. The repayment of the loan will be made from the proceeds of raising capital, when it is made. The loan is expected to be used, mainly, to finance the construction costs of integrated storage photovoltaic projects, which the company has begun to build.

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