The winner of the tender for waste recycling in Ramat Hovav offered the state a 100% discount

The state did not disclose details of the tender results, but the winning companies said in a stock exchange communiqué that the consortium would invest 1.5 billion shekels in the construction of the facility and would receive 9 billion shekels over 25 years of its maintenance.

The Marker reports that the initial conditions of the tender were a government payment of 220 shekels for each ton of garbage and 3 million shekels per month as a fixed rate. Tender participants could offer a discount on the cost of a ton of waste and an addition to the fixed rate.

The winner of the tender offered the state a 100% discount on garbage collection and limited himself to a minimum fixed fee for operating the facility. At the same time, according to the publication, the competitors’ offer was not much worse, that is, we are not talking about a dumping offer.

The consortium’s main income will not come from government payments, but from the sale of electricity, which will be generated from waste. As part of the tender, the winner is also guaranteed protection: the sale price of electricity will not fall below 27 agorot per kWh. The power plant’s capacity will be 50 megawatts.