The franchisee will receive the promised NIS 150 million set-up grant.
Sources inform ''Globes'' that the government and Jerusalem light rail franchisee CityPass are close to an agreement to expedite work on the project, after weeks of fractious negotiations. Under the pending deal, CityPass will receive the promised NIS 150 million set-up grant, while CityPass will meanwhile expedite work at main intersections at its own expense. The cost of this work is estimated at NIS 10 million.
City Pass was due to receive this grant in February, but the state delayed it until outstanding issues were settled. CityPass's board will have to approve any deal reached.
Under the pending deal, the state will allow CityPass to slightly deviate from the calibration standard for the track, a decision that will save the company NIS 20 million. The track will remain within European standards.
Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009
Lior Baron and Adrian Filut