Sources inform ''Globes'' that Shafir Civil & Marine Engineering Ltd. told the state that its stands behind its offer in the Road 531 tender. The estimated cost of building the lateral road between Road 6 (the Yitzhak Rabin or Cross-Israel Highway) and Road 4, the Coastal Highway, is NIS 2.8 billion.
The joint Ministries of Finance and Transport tenders committee demanded clarifications from Shafir regarding its bid, after the ministries found discrepancies between it and the financial model. Transport industry sources say that Shafir bid NIS 2.4 billion, less than the ministries' own estimate for the project, hence the request for clarifications from the company.
The Road 531 PFI (private finance initiative) tender is the largest transport infrastructure tender now underway. The project includes building a 20-kilometer bypass dual carriageway from Kfar Saba to Herzliya, and a railway line along the route. The tender winner will operate the road for 25 years after construction is completed in exchange for fixed payments from the state.
Four consortia bid in the tender in November 2007: Shafir Engineering, Danya Cebus Ltd. (TASE: DNYA); Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) and Ashtrom Properties Ltd. (TASE:ASPR); A. Arenson & Co. and Electra Ltd. (TASE: ELTR). Danya Cebus' bid was the second lowest, at NIS 2.8 billion. Housing and Construction today notified the TASE that its consortium had been notified that it did not win the tender.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2008
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