Ministry of Defense director general Uri Shani and Minrav Holdings Ltd. (TASE: MNRV) executives today signed the NIS 8.5 billion contract to build and operate the IDF Training Base City in the Negev. This is the largest shekel contract in the ministry's history.
The Minrav-led consortium will build the Training Base City within 30 months, and subsequently operate it for 25 years. The consortium won the tender in February.
"The project to move the IDF to the Negev will enable the IDF to vacate bases, some of which were built during the British Mandate to bases where the IDF will have a suitable work environment that will contribute to its operational effectiveness and improve efficiencies," said Shani.
The IDF will vacate bases in high demand areas in central Israel, such as Zerifin, turning the land over to the Israel Land Authority, which will market it for the construction of homes.
Shani added, "This is the largest contract ever signed by the Ministry of Defense in Israel, and its largest ever shekel budget." He added that, at the order of Minister of Defense Ehud Barak, the contract includes clauses requiring Minrav to give preference to using workers from the Negev and men who serve in the IDF reserves for the construction and operation of the Training Base City, and to buy Israeli-made products for it.
The 220,000-dunam (55,000-acre) Training Base City is due to being operations in 2014. It will include eight bases for the IDF Medical, Ordnance, Computers and Communications, Military Policy, and Education Corps, as well as the IDF liaison unit. It will house over 10,000 soldiers and 1,000 staff.
Minrav's share price rose 2.5% in morning trading to NIS 264.50, giving a market cap of NIS 245 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2012
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