Harel blames the Jerusalem municipality for the project's postponement.
"The conduct of the Jerusalem light rail project persuaded me not to become involved in any more infrastructure projects in Israel," Harel Insurance chairman Yair Hamburger told Prime Minister Ehud Olmert during his meeting last week with business sector leaders. Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) owns 20% of project's franchisee, CityPass
Hamburger hinted at the repeated disputes between CityPass and the Jerusalem municipality, which have delayed the light rail project. He implied that the government must work harder to make joint public and private sector projects worthwhile for both sides. His comments implied that he mostly blames the Jerusalem municipality and the Ministry of Transport for the delays, not the Ministry of Finance.
Harel recently acquired 10% of CityPass from Polar Investments Ltd. (TASE: PLR), and has an option to buy an additional 17.5% stake through Harel subsidiary Israel Infrastructure Fund (IIF). IIF is also negotiating to buy a stake in Carmelton, the Carmel tunnels franchisee, which is owned by Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) and Ashtrom Properties Ltd. (TASE:ASPR).
Published by Globes [online], Israel business news - www.globes-online.com - on September 16, 2008
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