Ari Real Estate Says Orot Yitzhak Power Project Passes Preliminary Planning Review

Ari Real Estate said on Friday that the Orot Yitzhak power project in the Menashe Regional Council had cleared a preliminary planning review. The company disclosed that the milestone was reached on November 12, following its recently announced investment agreement with Rapac Energy. In its filing, Ari said the project had “passed the preliminary planning review and met the threshold requirements.” Rapac’s November 8 announcement describes a planned natural-gas power station with initial combined generating capacity of approximately 850 megawatts on about 100 dunams. The project, designated national infrastructure plan TTL 229, includes an option for another generating unit of approximately 850 megawatts. Ari’s November 9 announcement said its wholly owned S.L.S. Mifrasim subsidiary and another rights holder signed an agreement with Rapac on November 8. After completion, Rapac would hold 50.1% of the project, S.L.S. 29.94%, and the other party 19.96%. The base consideration is approximately NIS 370 million, plus indexation and applicable VAT, with an initial payment and further payments tied to planning and land milestones and financial closing. The agreement provides for a further NIS 180 million if an additional 850-megawatt unit receives approval and reaches financial closing, with a proportional reduction for a smaller approved unit. Ari’s November 9 filing said construction remained dependent on statutory-plan approval, the required permits and financing. Completion of the rights assignment also requires specified conditions, including an Israel Land Authority application and competition approval where legally required.