Having already declared that it would not allow more delays in the Jerusalem light rail project, the government yesterday filed a claim with court arbitrators against project franchisee CityPass over delays in the project. The government asked arbitrators Judge (Emeritus) Boaz Okon and Adv. Ram Caspi to enforce the contract to complete the line by September 2010, the deadline agreed to in the compromise agreement signed last year.
CityPass had requested a second postponement for the project until June 2011.
The government has also asked the arbitrators to delay a NIS 32.5 million payment to CityPass, out of the NIS 150 million set-up grant for the project.
The government stated that CityPass failed to use scores of available workdays, knowingly putting it in a position where it would not be able to meet the project timetable. "The franchisee did not work on many days, while disrupting and disturbing normal life, in order to pressure the government to increase compensation on one hand, and reduce its own inputs on the other," states the request.
CityPass said in response that the request for an injunction was a groundless legal maneuver by the government that was filed in response to CityPass' claims for the many delays caused by the government. "There's no limit to the absurdity. The government and previous [Jerusalem] municipal administration compelled dozens of delays on CityPass, and they're now suing the franchisee for the delays they caused themselves. This resembles a situation in which the government disrupts the water supply to a farmer's field, damaging his crops, and sues the farmer for not supplying the vegetables on time."
Published by Globes [online], Israel business news - www.globes-online.com - on June 4, 2009
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