Note 8 - Contract Assets in respect of Concession Arrangements for the Construction and Operation of Photovoltaic Systems

Project	Total capacity in MW		Stake in the project			Tariff approval for the facility (NIS 0.01 per kWh)		Rate of return on the contract asset		Contract asset as of December 31, 2022 (USD in thousands)		Expiry date of the contract
Halutziot (*)		55		90	%		62.8		6% linked		-		-
Peirot HaGolan		1.5		51	%		53.99		5.75% linked		725		30/06/2035
Sde Nehemia		0.63		100	%		53.99		5.75% linked		926		31/03/2035
Barbur		0.5		51	%		53.99		5.75% linked		2,870		31/03/2035
Talmei Bilu		10		100	%		102.46		6.5% linked		36,649		30/09/2033
Mivtachim		10		100	%		130.39		8% linked		43,370		30/09/2033
Kramim		5		100	%		96.31		6% linked		14,143		31/12/2033
Idan		3		100	%		96.31		6% linked		8,091		30/09/2033
Balance as of December 31, 2022											106,774

	2022		2021
	USD in thousands
Balance as of January 1	287,042		286,251
Repayment of contract asset under concession arrangements	(17,579	)	(32,857	)
Finance incomes	17,188		24,310
Reclassification from IFRIC 12 to a fixed asset (*)	(162,359	)	-
Translation differences	(17,518	)	9,338
Balance as of December 31	106,774		287,042

(*)

Following the significant change to the terms of the concession arrangement with the state of Israel, which included the execution of significant technological changes to the Halutziot facility in the second quarter of 2022, and the expansion thereof in a manner which will increase the capacity and effectiveness of production, the Company re-evaluated the application of IFRIC 12 (hereinafter: the “Interpretation”), and concluded that the facility no longer falls under the scope of that interpretation. As a result, beginning from the second quarter of 2022, the Halutziot facility will be accounted for as a fixed asset, at cost.