Israel Corp has awarded a contract to Daewoo to build a combined cycle power plant.
The company has also awarded a maintenance contract to Mitsubishi Heavy Industries for the 440MW Rotem power station.
The two contracts together are worth $440m.
The plant will be built by December 2012 for OPC Rotem, an Israel Corp subsidiary.
Under the 12-year maintenance contract, Mitsubishi Heavy Industries will carry out the planned and unplanned maintenance of the main components including gas turbine, steam turbine and
Israel Corp, which owns 80% of OPC, plans to finance the development from equity and loans from financial institutions.