September Edition 2019

5 Industry Focus Infrastructure “The infrastructure project market is now genuinely exciting for one simple reason - deal-flow, which is absolutely vital for attracting the best international players andmost efficient sources of finance,” points ou t DavidMetzger , Global Head of Construction at Clifford Chance. “As recent bid lists demonstrate, the Israeli market has already attract the attention of international infrastructure and financial sponsors. We now believe the market is ready to attract in private sector international finance,” adds Metzger. International companies arealready liningup tobepart of theboom. According to a Government list issued in 2019, there are 204 projects worth NIS 196 billion in the pipeline, either budgeted or under approval, and this is already 38% higher in number (147 projects) and 69% higher (NIS 116 million) since the first list, published in 2017. “2019 has been an excellent year for the infrastructure market with multiple large BOT tenders being issued or awarded,” say s Mark Phillips , p artner in Infrastructure and Transport, at Herzog Fox & Neeman (“HFN” ). Noa Meidan , Head of Project Finance and Infrastructure at Tadmor & Co. Yuval Levy & Co ("Tadmor"), agrees: “The market is in overflow. There is a massive volume of projects and with so many projects, we are seeing great international interest, including from infrastructure investment funds from abroad, as well as international finance providers.” With more projects costing more money, public-private partnerships are one way that Israel is hoping to fund such spending, and a team appointed by Israel’s Finance Minister Moshe Kahlon has formulated a strategic plan. “The plan aims for a substantial increase in investments in infrastructure projects until 2030, mainly via public private partnerships (“PPP”) model in the following sectors: transportation,water, energy, environment, and construction. The total scope of these projects is expected to reach NIS 48 billion,” sai d Uri Noy , H ead of Energy & Infrastructure at Erdinast, Ben Nathan, Toledano & Co. (“EBN”). Israel attracts more foreign investment in infrastructure Substantial Rise in Investments in Infrastructure Projects until 2030