Six bidders for US$4 billion light rail PPP in Tel Aviv

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Six bidders for US$4 billion light rail PPP in Tel Aviv

Six international consortia have applied to pre-qualify to develop two new light rail transit (LRT) lines in Tel Aviv, estimated to cost ILS15 billion (US$4.13 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 centre, stopping at 44 "at-grade" stations.

The Green Line will connect the southern (Rishon Lezion and Holon) and northern parts (Hertzliya and Kiryat Atidim) of the Tel-Aviv metropolitan area to Tel-Aviv city center. The line is planned to run mostly at street level (34km of “at-grade” tracks) and partly underground (5km of underground tracks) including 58 stops “at-grade” and 4 underground stations.

An invitation to participate in the pre-qualification process was published in July 2018. The six consortia that have submitted applications are the following:

  1. Construcciones y Auxiliar de Ferrocarriles (CAF) and Shapir Engineering and Industry;

  2. CRRC, Shikun & Binui and Egged Israel Transport Cooperative Society; 

  3. Alstom, Electra, John Laing, and Dan Bus Company; 

  4. Siemens, Minrav Group, Allied Group and Paz Group; 

  5. China Railway Engineering Corporation, Bombardier, Excellence Nessuah Group, the Noy Fund and Phoenix Holding;

  6. China Communications Construction Company and China Harbour Engineering Company

Following the completion of the pre-qualification process, the two lines will be tendered separately. The Tender Committee, comprised of representatives of the Ministres of Finance and Transport, 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.

It is thought that the tenders will be published in May 2019. Together, the two LRT projects represent the largest private investment ever tendered in Israel.

The selected private partners will design, manufacture, supply, install and construct all elements of the LRT systems, including the LRT strip excavation, the multitubular (rail utilities infrastructure), tracks, catenary poles electrification, rail systems, signaling, at-grade stops, rolling stock and maintenance depots.

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