China Civil Engineering Construction Corporation, one of China’s largest contractors, has won a deal believed to be worth about US$234M for the construction of 9km of road tunnel under Mount Carmel in the Israeli port city of Haifa.
Plans call for the construction of two pairs of twin tunnels, each of about 8m diameter and containing a dual two-lane carriageway. The twin 3.1km long Western tunnels will run from the Carmel Beach area to the Carmel Mountains. The 1.5km long twin Eastern tunnels will connect the Carmel Mountain with Krayot Junction.
The deal was confirmed in October about nine years after the road project was first proposed. The contract was awarded by Carmelton, a joint venture between Ashtrom and Housing and Construction Holding (Shikun Ubinui), which was awarded a 35-year franchise to build and operate the tunnels in August 2005.
Under the terms of the deal Carmelton will finance construction of the tunnels, pay the Israeli government a further US$62M in royalties and introduce a revenue-sharing mechanism with the government. The road tunnels are expected to open in 2010.
