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Israel: Influx of Major
Transportation
Projects
Since the early days of the British Mandate, and until only a few years ago, the task
of planning and constructing Israel's transportation network was undertaken almost
exclusively by government entities.
In a move to align with the global wave of privatization, the Israeli Government passed a
resolution in 1992 for the construction, by way of a public-private partnership, of a toll
road that would cross Israel from north to south (Highway 6).
In the following two years Cross Israel Highway Law, 5755-1994 and Toll Road Law
(Cross Israel Highway), 5755-1995 were passed, laying the legal foundation for the
construction of Highway 6, whereby the Government would manage the tender phases
and implement its policies through a state-owned company and a private company
would execute the construction, operation and maintenance of the highway and collect
toll fees.
The legislative move was a breakthrough in the field of BOT projects in Israel. In the two
decades since the enactment, the principles of PPP and PFI funding in transportation
infrastructure, renewable energy, desalination and construction of facilities and public
institutions were successfully integrated into the Israeli market, enabling local and
international developers,contractorsandconsultants toparticipate in theestablishment
of Israeli infrastructure.
In August 2016, the Israeli Government took significant steps to promote and develop
the transport infrastructure around the Tel Aviv Metropolitan Area, by approving the
allocationof hundredsofmillionsofU.S.dollars toanumber of large-scale transportation
infrastructure projects.
Following the success of BOT projects and the experience gained in the use of PPP
and PFI principles in funding large-scale infrastructure projects, the Israeli Government
is ready to roll out the red carpet for the international community of developers,
contractors and consultants, to participate in some of the largest construction projects
undertaken to date in Israel.
In the two decades since the enactment, the principles of PPP and PFI funding in
transportation infrastructure, renewable energy, desalination and construction
of facilities and public institutions were successfully integrated into the Israeli
market.