France and Israel are joining hands to build a $3-billion power station in Ashkelon, Globes reported on Thursday.
The Israel Electric Corporation (IEC) and Électricité de France SA have signed a memorandum of understanding which calls for the EDF to own 51 percent of the venture.
The station is projected to have a 1,500-megawatt capacity and will operate on both natural gas and coal. It will be the largest project of its kind in Israel in recent years.
The project is conditional on permission from the various government agencies, which may require a tender.
Contacts between the IEC and the EDF were initiated about two years ago, and picked up speed very recently, after Minister of National Infrastructures Silvan Shalom endorsed the plan. Under the agreement, the IEC and the EDF will also cooperate in building a smaller power station at Alon Tavor and a smart grid in Israel.