Shafir Engineering set to win NIS 1.2b Krayot bypass tender

The 14-kilometer road will have five interchanges.

Sources inform ''Globes'' that Shafir Civil and Marine Engineering Ltd. is set to win the NIS 1.2 billion tender to build the Krayot bypass road from Haifa to Acre. Israel National Roads Company Ltd. is due to announce the winner in a few weeks.

The 14-kilometer road will have five interchanges. The total cost of the project is estimated at NIS 1.9 billion.

Shafir recently lost a NIS 1.3 billion tender for the maintenance of roads in the Galilee to Shikun u'Binui Solel Boneh Building and Infrastructure Ltd., a wholly-owned subsidiary of Shari Arison-controlled Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: HUCN).

Industry sources are waiting to see whether Shafir's apparent win in the Krayot road bypass tender will affect the financial closing for construction of lateral Road 531. The company won the tender last year, with the lowest bid of NIS 2.4 billion. Road 531 is a lateral road that will link the Coastal Highway (Road 2) with the Yitzhak Rabin Highway (Road 6) in the Kfar Saba-Ra'anana area in the Sharon. Shafir said that it will have no problems building both roads at the same time.

Four companies are bidding in the Krayot bypass road tender: Shafir, Solel Boneh; Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) contracting unit Danya Cebus Ltd. (TASE: DNYA) with Gili & Yoel Azaria Ltd.; and Ashtrom Properties Ltd. (TASE:ASPR) subsidiary Derachim Building & Development (SAZ) Ltd.

The National Roads Company declined to comment. Shafir said that it does not respond to matters in the tender process.

Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018