The Ministry of Transport and the Ministry of Finance of Israel are reconsidering opening the light rail NIS 25 billion (EUR 5.7 bn) project to private investors. This decision could concern the planning and developing of the Green Line and the Purple Line.
Reasons for this decision are the pressure to speed up the timetable for the lines and the potential to raise funds for their construction from outside the state budget.
While the idea of a ‘turnkey’ contract is seen by some as prone to budget overruns and timetable deviations, a ‘PPP’ model would mean the funds invested in the project come from a self-funded developer or are closely monitored by the banks and, therefore, less likely to exceed the budget or timetable.
The work on the first light rail line has continued as planned, but the project has been the target of heavy public criticism over its costs and timetables.
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