Israel Railways is set to invite financial tenders by the end of March for the construction of nearly 13km of tunnel on a new US$690M high-speed rail line between Tel Aviv and Jerusalem after seven groups submitted technical bids.

The rail company plans to shortlist about three or four groups after assessing technical proposals from the seven ventures comprising: Israel’s Solel Boneh Building and Infrastructure in association with Germany’s Ed Zublin and Denmark’s E Pihl & Son; Israel’s A Arenson in partnership with Austria’s A Porr and Zschokke Locher of Switzerland; Israel’s Shafir Civil and Marine Engineering with Austria’s Alpine Mayreder Bau; Israel’s Danya Cebus in joint venture with China Railway Construction Corporation; Israeli firm Roichman Bros Shomron Infrastructures with Impresa Pizzarotti of Italy, Israel’s Minrav Holdings with China Railway First Group; and Israel’s Ashtrom Group with Russia’s Open Joint-Stock.

Construction is due to start by September and involves the construction of an 11.6km tunnel, a 1.1km tunnel and a 150m long bridge. Development of the railway is about two years late and about US$156M over budget. The railway was due to be open in 2009, but will not now be completed until 2011.