Road 431 between Modi'in and Rishon LeZion will be opened to traffic in full tonight, after over two years of work at a cost of NIS 2.5 billion. Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) unit Netivei Hayovel Ltd., held through Danya Cebus Ltd. (TASE: DNYA) is the project franchisee.
Israel National Roads Company Ltd. today gave its final approval to open the road to traffic along its entire length. The road will be gradually opened with the cooperation of the Traffic Police over a period of several hours, one interchange at a time.
Road 431 is 22 kilometers long, linking Modi'in and Rishon LeZion with Road 1 (the Jerusalem-Tel Aviv highway), Road 6 (the Yitzhak Rabin Highway, also known as the Cross-Israel Highway) and Road 20 (the Ayalon Freeway). Opening Road 431 should reduce traffic on the Jerusalem-Tel Aviv highway, and cut travel time between Modi'in and Rishon LeZion to 20 minutes.
Despite the opening, the interchange with Municipal Road 431 to Modi'in, is still not ready.
Road 431 was the first road in Israel to be built by the PFI (private finance initiative) method. The franchisee built the road with its own financing, and will operate it for 25 years for payment from the state during the franchise period. Danya Cebus will receive a NIS 200 million set-up payment from the state when the road is opened. The company will also receive a semiannual NIS 59 million grant and shadow toll of NIS 0.02 for each kilometer of travel on the road.
Danya Cebus overcame many obstacles during construction of Road 431. Last year, the company lost NIS 165 million because of unplanned construction costs. The company and the Ministry of Finance have a NIS 500 million disagreement, which is now in arbitration with Judge Emeritus Eliyahu Winograd.
Published by Globes [online], Israel business news - www.globes-online.com - on February 4, 2009
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