RFP for US$9 billion light rail PPP in Jerusalem

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RFP for US$9 billion light rail PPP in Jerusalem

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The Israeli government's tender committee for the JNET Jerusalem light rail project has published the first package of tender documents. The project, which involves the design, construction and operation of light rail lines in Jerusalem, is the largest PPP project to ever be developed in Israel, with an estimated value of US$9 billion.

It involves the operation of the existing light rail line in Jerusalem, the Red Line; extension of the Red Line by about 7km and construction of twelve additional stations; and construction and operation of a new light rail line, 20km long, comprising 47 stations, to be called the Green Line.

The Red Line began to operate commercially at the end of 2011, under a concession agreement. The State plans to acquire the concession in order to re-tender it as part of this package. The line is spread over 14km, from Pisgat Ze'ev to Mount Herzl, and includes 23 stations. To date, it transports around 150,000 people a day.

The project will extend the line to the Hadassah Ein Karem hospital in the south and the Neve Yaakov neighborhood to the north. The Green Line will connect the city center to Gilo and Malha neighborhoods and will include extensions to the Har Nof neighborhood and the Hebrew University compound on Mount Scopus.

The total concession period of the project is 25 years. The system will be operational for a period of 15 years, with the state having a unilateral option to extend the system for an additional 10 years until the end of the concession period. At the end of the period ownership of the light rail lines will be transferred to the state.

The lines will begin operating gradually, with the aim that the entire system be operational in 2025.

Upon completion, the light rail network will span 40km and include about 82 stations and direct connection to the high-speed railway line to Tel Aviv. It is expected to transport over 350,000 passengers daily to residential areas, employment, commerce, tourism and education in the city. The fleet of trains will total more than 150 cars.

Earlier this year, the tender committee, comprised of representatives of the Ministry of Finance, Ministry of Transport and the Jerusalem municipality, prequalified seven of the eight teams that participated in the prequalification phase of the tender. The teams have until 31 August 2018 to submit responses to the tender documents published this week.

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