Harel Insurance Investments (TASE: HARL) is holding talks for the funding of the Carmel Tunnels project in Haifa, chairman Yair Hamburger said today. Sources inform ''Globes'' that the funding will amount to NIS 200-300 million. If it does provide funding, Harel will have the option on a share in the ownership of the project.
The project involves constructing two five-kilometer tunnels between the Krayot junction (Check Post junction) and the southern entrance of Haifa on the coastal highway. The total cost of the project is NIS 1 billion and the tunneling work is worth about $100 million. The work is due to take four years.The project is being financed by Israel Discount Bank (TASE: DSCT).
Hamburger made his comments today following the raising of $70 million by an Israeli infrastructure fund owned jointly Harel and STG, controlled by adv. Yehuda Raveh. The fund also intends to invest in infrastructure projects in Eastern Europe. Former Minister of Finance Avraham Shochat will serve as chairman, while Yaron Kestenbaum will become CEO. The fund’s investment committee will include Oil Refineries chairman and former Ministry of Finance director general Ohad Marani, Derech Eretz Highways CEO Ehud Savion, Amos Epstein, Jacob Edri and Rami Guzman. Most of the preliminary funding came from institutional investors, with the fund set to raise a further $130 million in coming days, mainly from foreign investors.
The fund will make equity and mezzanine investments in infrastructure projects. Kestenbaum said that the fund was currently looking at four or five possible investments in transport and energy in Israel. It will focus primarily on PFI, BOT, and BOO projects.
Published by Globes [online], Israel business news - www.globes.co.il - on October 16, 2006
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