US$4 billion light rail PPP tender launched in Israel

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US$4 billion light rail PPP tender launched in Israel

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NTA Metropolitan Mass Transit System Ltd., the Israeli government company responsible for the design and construction of a mass transit system for the Tel Aviv metropolis, has published an invitation to pre-qualify to develop two new light rail transit (LRT) lines in the city, estimated to cost ILS15 billion (US$4.12 billion).

The Purple Line will connect the eastern parts of the Tel-Aviv metropolitan area (Ramat Gan, Yehud, Or Yehuda, Petach Tikvah and Givat Shmuel) to Tel-Aviv city center, running 29km through 44 stops. Key destinations along the route include Tel-Hashomer Hospital and Bar-Ilan University. The line is expected to serve 60 million passengers annually.

The Green Line will link the southern (Rishon Lezion and Holon) and northern parts (Hertzliya and Kiryat Atidim) of the Tel-Aviv metropolitan area to the city center. The planned 39km route has 62 stops. 65 million people are projected to use the line every year.

Following the completion of the pre-qualification process, the two lines will be tendered separately. The Tender Committee intends to issue two separate invitations to those prequalified to submit bids. It is expected that the lines will be awarded to and executed by different bidders.

The scope of work to be conducted by the selected private partners is expected to include the design, manufacture, supply, installation and construction (as applicable) of all LRT elements within the LRT strip, including the LRT strip excavation, the multitabular (rail utilities infrastructure), tracks, catenary poles electrification, rail systems, signaling, at-grade stops, technical rooms located outside the LRT Strip and the rolling stock.

The private partners will also be responsible for maintenance depots. One is planned to be installed at the terminus of the Purple Line, at HaTayasim junction, to serve approximately 100 vehicles, with facilities for light and heavy maintenance, stabling tracks and administration facilities. 

The Green Line's sponsor will deliver two depots - one at the terminus of the north section in Herzeliya and another at the east south section in Holon. The depot in Herzeliya will have facilities for light maintenance and stabling, and the depot in Holon is planned as a heavy and light maintenance depot, with stabling and administration facilities. The depots will serve the Green Line for the maintenance and stabling of approximately 120 vehicles.

Responses to the invitation to prequalify for the projects are invited until 13 December 2018. For more information, see the Business Opportunity.

These projects join two other major light rail PPPs in Israel currently in tender. In May this year, Cross Israel Highway Ltd. launched a tender for a private company or consortium to manage the selection of a private partner to construct and operate a 41km light rail line between Haifa and Nazareth, which has an estimated total investment of ILS6 billion (US$1.67 billion).

Furthermore, last month the Israeli government's tender committee for the JNET Jerusalem light rail project published tender documents for the operation and extension of the existing light rail line in Jerusalem, the Red Line; and construction and operation of a new light rail line, 20km long, comprising 47 stations, to be called the Green Line.

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