An evaluation group is assessing bids from three groups for the US$2.14bn construction of a light rail system in greater Tel Aviv, the Israeli capital, after tenders for the build-operate-transfer concession were submitted on 27 February. Commenting on the return of bids, transportation minister Meir Sheetrit said: “This is a historic moment, a dream that started 32 years ago.”
About 10km of the 22km Red Line will be built underground. The scheme is being planned by the government backed Urban Transport Authority and the NTA Metropolitan Mass Transit System.
The three groups comprise: MTS Group formed by Egged Holdings, Africa Israel Investments, Siemens, SGPS, China Civil Engineering Construction Corporation; HTM Spidan Group which comprises Aviv Construction, Shafir Engineering, Parsons Brinckerhoff, Karden, Tahal, Germany’s BVG and Bombardier; Metro Rail Group consisting of Housing & Construction, Ashtrom, French rail operator Connex, Alstom, Ed Zublin and Vinci.
A successful group is expected to be chosen by July. The venture will then arrange finance, prepare detailed design and obtain construction and other regulatory approvals.
One of the key elements in the award of the concession will be the level of government finance required by the bidders. Officials have already capped government participation at 70 per cent. NTA spokesman Moshe Gal said: “The winning contractor is expected be the one who goes below the 70 per-cent.”
Construction will start in mid-2007. The 22km line will run from Bat Yam in the south, via Jaffa, the central train station and Bnei Brak to Petah Tikva. The first stage, running from Bat Yam to Jaffa, will open by 2010, while the remaining stage to Petah Tikva will be completed by the end of 2012. The franchise will last 32 years including the five to six year construction phase.
The scheme has been delayed several times since the tender process began in 2001 largely as a result of technical and construction issues. These have resulted in a raft of changes to make the project more attractive to bidders. These include the payment of the tender costs for the second placed bidder, compensation to all three participants if the tender is cancelled, compensation if passenger numbers fail to meet specified targets and guaranteed milestone payments during construction.
