Neot Hovav Waste-to-Energy (WtE) Project

Background:

The Neot Hovav Waste-to-Energy (WtE) plant is a significant development in Israel’s efforts to address its growing waste management challenges. Located in the Negev, it is the country’s first large-scale WtE facility, designed to process up to 300 thousand tons per annum of municipal solid waste while generating electricity from the combustion process. This plant represents a shift toward sustainable waste solutions in a market that has historically relied heavily on landfilling, with over 80% of Israel’s waste being dumped in landfills. As the country seeks to meet its environmental targets, projects like Neot Hovav aim to reduce landfill dependence, increase energy recovery, and encourage a circular economy approach.

BLK’s Services:

BLK served as the financial advisor for the Ministry of Finance and the Ministry of Environmental Protection inter-committee which are responsible for the Neot Hovav WtE PPP tender. As part of the services BLK conducted market research and development of first of its kind business and financial model for WtE project within the Israeli wate market.

Work Process:

BLK has established a team of experts with vast experience in PPP tenders and in the Israeli waste and energy markets. The team built a financial model which simulates the financial results of the project including identification of main cost and revenue drivers and recommendations on allocation of risks between the owner and concessionaire.

BLK developed advanced financial models, analyzed market dynamics of supply and demand, and designed contractual mechanisms, including KPIs, payment mechanisms and tender strategies.

The tender process included a PQ phase in which 6 groups had been announced as qualified bidders.

The work is carried out in cooperation with the Ministry of Finance, the Ministry of Environmental Protection and various consultants to the Government.