Israel Electric Corporation's board of directors approved NIS 2.89 billion in spending for 2006, cutting NIS 25 million from the original budget proposal, the company said Monday. Of the total, NIS 1.09b. would be invested in the electricity production system; NIS 974.6m. in the distribution system; NIS 534.8m. in management; and NIS 228.1m. in the conduction and conversion network. Smaller amounts would go to research and development projects and other initiatives. Israel Electric also plans to acquire NIS 88.9m. in electricity from private producers in 2006, up from NIS 66.3m. in 2005. IEC noted that increased efficiency is reflected in the cost of electricity produced, which will be 5.8 agorot per kiloWatt/hour in 2006, down from 5.92 agorot per kW/h in 2005.