Ashdod Seawater Desalination Facility – Representing the Lenders NIS 2.7 Billion Credit Facilities

Our firm is proud to represent a consortium of lenders, led by Mizrahi Tefahot Bank, in a transaction for the provision of loans and credit facilities amounting to approx. NIS 2.7 billion to a partnership formed by Shapir Engineering and GES (which is controlled by Generation Capital), for the purpose of purchasing the seawater desalination facility at Ashdod from Mekorot Development & Eneterprise.

The facility, which has a production capacity of 100 million m3 per annum, was constructed and is being operated pursuant to a concession granted until 2038 in accordance with a BOT contract with the State of Israel.

The financing provided by the lenders is also used for refinancing the facility’s debt, executing rehabilitation works on the facility, and constructing an adjacent power plant, which will supply energy to the facility and to the national electricity grid in accordance with regulations issued by the Electricity Authority.

The lenders were represented by partners Uri Mandel and Yaron Cohen, and associates Iris Theys, Oren Tal and Hen Jacobson from our Energy, Infrastructure and Project Finance department, and by Partner Dan Sella and associate Avishay Sadeh from our Banking and Finance department, along with intern Shada Samara

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