Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) contracting subsidiary Danya Cebus Ltd. (TASE: DNYA) has reversed its position on repairs to the barriers on newly-opened Road 431. The road franchise, Danya Cebus subsidiary Netivei Hayovel Ltd., has notified Israel National Roads Company Ltd. that it will fix the safety flaws discovered on the road, which runs between Rishon LeZion and Modi'in.
Danya Cebus had previously refused to accept responsibility for the safety barriers, or to put in place temporary barriers demanded by the National Roads Company, at a cost of tens of millions of shekels.
Two weeks ago, the National Roads Company itself began putting the temporary barriers in place, and announced that the cost would be deducted from the set-up grant that Danya Cebus will receive from the state for the road. Last week, Danya Cebus announced that it had reached an agreement with the barriers' manufacturer, Traffic-Tech to jointly fix the flaws in the barriers.
The National Roads Company announced that, as of this morning, Netivei Hayovel has begun fulfilling its obligation to repair the safety flaws discovered on Road 431, and that it would replace all flawed barriers, and that 7,000 barriers will be specially flown in from Italy for this purpose. The replacement is expected to be completed by the end of the month.
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2009
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