Shafir Civil Engineering has failed to secure the financing or obtain the planning and engineering permits.
The Ministry of Finance has notified Road 531 franchisee Shafir Civil and Marine Engineering Ltd. that it intends to cancel the company's contract to build and maintain the road because the company is in breach of contract for the NIS 2.4 billion project.
Shafir has failed to meet its contractual obligations, including securing the financing and obtaining the planning and engineering permits within the contract's stipulated deadlines. In view of the delays, and Shafir's inability to secure the necessary financing, the Ministry of Finance intends to cancel the contract and cash Shafir's bank guarantees under the terms of the contract, subject to a hearing.
Lateral Road 531 runs from Road 6 (the Yitzhak Rabin or Cross-Israel Highway) to Road 2 (the Coastal Highway) in the Kfar Saba-Ra'anana area in the Sharon. The project includes a railway line along the highway island. The start of construction was postponed from last summer, after Shafir was unable to close NIS 1.8 billion in financing.
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2010
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