TransJerusalem J-Net Ltd consortium comprised of CAF Group and Shapir Engineering was awarded a concession to build, operate and transfer light rail project in Jerusalem. The project is a PPP scheme and includes the construction of 27 kilometres of new track, 53 new stations and various depots covering the entire stretch of the current Red Line (6.8 kilometres), and the construction of the new Green Line which is 20.6 km long. The contract also includes the design and supply of 114 new Urbos trams for the new Green Line, and the refurbishment of the 46 units which are currently in service on the existing Red Line.

The project scope of the successful consortium will also include the supply of the signaling, energy and communication systems, as well as the operation and maintenance of both lines for 15 and 25 years respectively, with the possibility of extending the term of operation.

The CAF Group’s supply part of this project exceeds EUR 500 million (USD 556 million) and consists of the supply of new units and the refurbishment of existing ones, the supply of signaling, energy and communication systems in addition to project integration. The Group will also have a 50% stake in the SPV company that will manage the operation and maintenance of both lines, the business volume of which is estimated to be circa EUR 1 billion (USD 1.1 billion).

The tender for Jerusalem LRT is considered the largest-ever tender in Israel and is worth ILS 10 billion (USD 2.8 billion).

The planning work for the project is expected to start this year with the new network fully operative by 2025. The TransJerusalem J-Net Ltd consortium was selected over the other bidding group, which consisted of the companies Shikun & Binui and Egged (Israel), CRRC (China), Comsa (Spain), Efatec (Portugal) and MPK (Poland).

The tram's Red Line currently extends along 13.8 km with 23 stations distributed on the route, was inaugurated in 2011 and providing transport to over 145,000 passengers on average per day. With the extension of this line and the construction of the new line, the citizens of Jerusalem will benefit from a more efficient and complete railway transport network.

The Ministry of Finance of Israel said that when completed, the two lines will carry 500,000 people a day in total and the LTR system will be one of the biggest mass transport systems in Europe and the Middle East.