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Exhibit 12

AMPAL-AMERICAN ISRAEL CORPORATION
AND SUBSIDIARIES

SCHEDULE SETTING FORTH THE
COMPUTATION OF RATIOS OF CONSOLIDATED
EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)

|                                                                                                                                                                                     |  |                                |        |      |   |         |   |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------ | ------ | ---- | - | ------- | - | - | ------- | -
|                                                                                                                                                                                     |  | Fiscal Year Ended December 31, |       
|                                                                                                                                                                                     |  |                                |       
|                                                                                                                                                                                     |  | 2006                           |        | 2005 |   | 2004    |  
|                                                                                                                                                                                     |  |                                |        |      |   |         |  
|                                                                                                                                                                                     |  | (U.S.
  Dollars in thousands)  |       
|                                                                                                                                                                                     |  |                                |       
|Earnings:                                                                                                                                                                            |  |                                |        |      |   |         |   |   |         |  
|Income (loss) from
continuing operations
  (including dividends from less than 50% owned affiliates) before income
  taxes, equity in earnings of affiliates, and minority interests |  | $                              | (1,028 | )    | $ | (8,517  | ) | $ | (33,467 | )
|Fixed charges                                                                                                                                                                        |  |                                | 5,154  |      |   | 5,257   |   |   | 4,880   |  
|                                                                                                                                                                                     |  |                                |        |      |   |         |   |   |         |  
|Earnings (insufficient earning to cover
  fixed charges)                                                                                                                             |  | $                              | 4,126  |      | $ | (3,260  | ) | $ | (28,587 | )
|                                                                                                                                                                                     |  |                                |        |      |   |         |   |   |         |  
|Fixed charges:                                                                                                                                                                       |  |                                |        |      |   |         |   |   |         |  
|Interest                                                                                                                                                                             |  | $                              | 5,134  |      | $ | 5,257   |   | $ | 4,880   |  
|Amortization of
debentures expenses                                                                                                                                                  |  |                                | 20     |      |   | --      |   |   | --      |  
|                                                                                                                                                                                     |  |                                |        |      |   |         |   |   |         |  
|Fixed
charges                                                                                                                                                                        |  | $                              | 5,154  |      | $ | 5,257   |   | $ | 4,880   |  
|                                                                                                                                                                                     |  |                                |        |      |   |         |   |   |         |  
|Ratio of earnings (deficit) to fixed
  charges                                                                                                                                       |  |                                | 0.80:1 |      |   | (0.62:1 | ) |   | (5.86:1 | )



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