Four consortia are finalizing their bids in the Ministry of Defense multi-billion shekel tender for the construction and operation of the IDF training base city at Tzomet in the Negev. The first part of the project is worth NIS 2.5 billion. Defense sources have estimated the total cost of project at NIS 10 billion. The tender winner will build 250,000 square meters of facilities on a 1,400-dunam (350 acre) site.
The two leading consortia are Lev Leviev-controlled Africa-Israel Investments Ltd. (TASE:AFIL) together with Electra Ltd. (TASE: ELTR), Ness Technologies Ltd. (Nasdaq: NSTC; TASE: NSTC), and Elul Tamarind Group unit Eltel Technologies Ltd.; and Shari Arison-controlled Shikun u'Binui Holdings Ltd. (TASE: SKBN) with ISS Israel Ltd.. The two other consortia are led by Avraham Kuznitzky-controlled Minrav Holdings Ltd. (TASE: MNRV) with Rad Bynet Ltd., and Israel Shapiro's Shafir Civil and Marine Engineering Ltd. with Global CST Ltd.
"There's a lot tension over this tender, which is huge by any measure," an executive at one of the consortia told "Globes" today. "We're obviously alert to the fact that every consortium really wants this project, and we're working very hard into the small hours of the night to formulate the best offer.
"Nonetheless, we're taking into account the many risks involved in the measure, including very complex construction work and supplying a complete network of services and maintenance for 25 years, including catering, cleaning, perimeter security, and computer and communications support services. Each item and element in this contract, for such a long period of time, is complicated, because it's necessary to lock in the price for these services at a very early stage."
Africa-Israel believes that its venture can provide all the defense establishment's needs, by collaborating with maintenance outsourcing services Elul subsidiary Eltel, which already runs the IDF main training base at Zeelim. Ness Technologies is one of Israel's top IT integrators.
Shikun uBinui is determined to offer an environmentally friendly approach, which will save energy, recycle waste and water, and other features. Minrav has hooked up with Rad Bynet to provide the software, computing, and electronics services. Shafir has teamed up with security consultancy firm Global CST, founded by president (Maj.-Gen. res.) Israel Ziv, a former head of the IDF Operations Directorate.
11,000 soldiers will serve at IDF training base city, which the Ministry of Defense plans to begin operations in late 2013. Trading base city will enable the IDF to vacate current training bases at Zerifin in central Israel and elsewhere. Most of the land will revert to the Israel Land Administration, which will distribute it to local authorities to be zoned for construction.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2011
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