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Canada Expects
Increased Trade

Jerusalem (JPFS) — The gov-
ernment approved a bill which
would breach the Israel Electric
Corporation's power-supply mo-
nopoly, amid scathing attacks by
experts and politicians who say
it does not go far enough.
The bill, which was present-
ed by Energy Minister Gonen
Segev, calls for electricity pro-
duction to be opened up for pri-
vate manufacturers, who will be
conceded 20 percent of local con-
sumption.
Half the new providers will
produce power locally, while the
other half will do so in neighbor-
ing countries.
In addition, a new public au-
thority will determine and su-
pervise the pricing of power for
unprofitable market segments,
write rules for the company's fi-
nancial and technical reporting,
and create standards for quali-
ty of service.
The new bill is aimed at reg-
ulating the power sector's activi-
ty following the expiration this
spring of its 50-year-old franchise.
The bill would be reconsidered
a decade from its final legislation.
Dr. Avi Ben-Bassat, Bank of Is-
rael's head of research, insinuat-
ed during the Cabinet's meeting
that the bill all but leaves intact
IEC's monopoly.
Buying IEC stock will now be
an unwise move on the part of
foreign investors, Mr. Ben-Bas-
sat reportedly told the Cabinet
session. Earlier, Mr. Ben-Bassat
said the IEC bill, like other in-
frastructure-related legislation,
has proven that labor unions can
maneuver law-making to suit
their interests.
The IEC union has fought
against any easing of its grip on
Israel's power supply.

Jerusalem (JPFS) — Trade be-
tween Israel and Canada is ex-
pected to grow significantly
following the recent proposal for
a free-trade agreement between
the two countries, according to
Ruth Zeisler, commercial coun-
selor at the Canadian Embassy
in Tel Aviv.
The agreement, if approved by
both governments, will establish
a free-trade regime between
Canada and Israel featuring full-
tariff elimination on all manu-
factured goods, agriculture and
fish products.
Both governments will be re-
viewing the agreement in the up-
coming months.
Mr. Zeisler said the agreement
will put Canada on "equal foot-
ing" with the United States and
the European Union, both of
which have free-trade agree-
ments with Israel. •
"Canadian goods have been
disadvantaged by tariffs," Mr.
Zeisler said. 'The new agreement
basically puts Canadian exports
on a level playing field with U.S.
and European products."
Canada has a trade deficit with
Israel, with exports totaling $140
million and imports at $180 mil-
lion last year. Canada's exports
to Israel last year increased 49
percent from 1994, while imports
increased 39 percent.

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Cabinet OKs
Franchise Bill

I

Jerusalem (JPFS) — Ormat In-
dustries has announced it will
build a $32 million geothermal
power station with Power New
Zealand. Ormat's share will be
$25 million.
Power New Zealand is the sec-
ond largest electric provider
there. The station will be situat-
ed on an active geothermal site
in New Zealand's Rotokawa re-
gion.
Using Ormat's new geother-
mal combined cycle technology,
turbines driven on underground
geothermal steam will be used
with Ormat closed-cycle tur-
bines.
The Rotokawa plant is Or-
mat's fourth project there. A $60
million order was received re-
cently to build a 55-megawatt
plant.

c/
\

IAI Subsidiary
Posts A Profit

Jerusalem (JPFS)— Commodore
Aviation, the Miami-based sub-
sidiary of Israel Aircraft Indus-
tries, posted a $500,000 net profit
last year, compared with a $3.4
million loss in 1994, company ex-
ecutives announced.
The company also announced
$25 million in sales, a 39 percent
increase from $18 million in
1994.
Commodore was established
by IAI as a repair and mainte-
nance station for airlines flying
the South American route, in-
cluding El Al.
Commodore is expected to
achieve $1 million in profits and
$27 million in sales this year, the
executives said.
The company's director-gen-
eral is Mordechai Hendel, while
its board director is David Arzi,
a deputy director-general at IAI.
Executives said 70 percent of
Commodore's expected sales for
the year have already produced
signed contracts with various
airlines. The company's com-
petitors in the United States in-
clude American Eagle, a
subsidiary of American Airlines,
and DHL — the air freight ser-
vice.

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