1. The Israeli Ministry of National Infrastructures (“MNI”) / the Natural Gas Authority, acting on behalf of the Government of the State of Israel, hereby invites bids for the grant of licenses under Section 3(a)(2) of the Israeli Natural Gas Law, 5762-2002, for the construction and operation of a natural gas distribution network in the Negev Region (approximately covering the areas of Beer Sheva and the Dead Sea) and for the construction and operation of a natural gas distribution network in the Center Region (approximately covering the area of Gush Dan), for a period of 25 years.

2. Commencing January 10, 2008, interested parties may purchase the tender/s documents at MNI upon payment of 5,000 NIS (V.A.T. included) for each tender, payable directly to MNI’s bank account with the Postal Bank, account no. 0-06233-0. The purchase fee is not refundable. The tender documents will be received upon presentation of the said Postal Bank payment.

3. The tender documents may also be inspected, at no cost, at the offices of MNI, located in the Sha’arei Ha‘ir Building, 216 Yaffo Street, 7^th floor, Jerusalem, commencing January 10, 2008. Please contact Ms. Osnat Shohat, at  +972-2-5006764 before your arrival.

4. Participation in the tenders is restricted to entities that meet the criteria set forth in section 8 of the Natural Gas Law ,5762-2002, as well as the additional requirements set forth in the tender documents, and which purchased the tender/s documents, by themselves or by a person acting on their behalf. Prerequisites for participation in the tenders can be found on MNI’s web site at: http://www.mni.gov.il/mni/he-il/Energy/NaturalGas/.

Preconditions for participation in the Tender/s

5. Requests for clarifications regarding the tender documents may be made to MNI in writing, no later than February 14, 2008, at 6pm, via facsimile no. +972-2-5006766. For confirmation that the request has been receivedcall +972-2-5006764.

6. The Tender Committee will consider whether to hold a bidders’ conference. In case it is decided to hold a bidders’ conference, a notice detailing the conference time and location will be published on MNI’s web site.

7. The bids must conform to the instructions detailed in the tender documents and must include all required documents.

8. The bids must be submitted by hand delivery to MNI at its offices located in the Sha’arei Ha’ir Building, 216 Yaffo Street, 7^th floor, Jerusalem, and deposited in the designated box located in the office of Ms. Osnat Shohat, coordinator of the Tender Committee, on March 31, 2008, between 9am and 6pm. Any bid submitted other than as specified above shall be rejected.

9. The Tender Committee may modify the timeframes set out herein, in accordance with its authority under the tender documents.

10. The criteria upon which the Tender Committee may choose the winning bid in each of the tenders are detailed in the tender documents.

The Tender Committee