Fast lane to Tel Aviv franchisee Shapir Civil and Marine Engineering Ltd. will receive NIS 100 million from the state under a settlement, according to information obtained by "Globes". The money is to compensate the company for adjustments made to the project because of planning mistakes by the government, which failed to leave room for the construction of a fourth railway track along the Ayalon Highway in Tel Aviv.
The Ministry of Finance said in response, "The matter is under discussion between the relevant parties."
In 2006, Shapir won the BOT (build, operate, transfer) tender published by the Ministry of Finance Accountant General to build and operate a fast lane to Tel Aviv from Shapirim Interchange on Route 1 (the Tel Aviv-Jerusalem highway) to the eastern entrance to the city. Shapir's bid stunned the tender organizers, when instead of asking for a construction grant like the other bidders, it proposed paying the state NIS 182 million in royalties for a 30-year franchise.
During the fast lane's construction, serious disputes broke out between Shapir and the government, over the government's demands for changes to the project, when it became clear that the original plan left no room for the construction of a fourth railway track along the Ayalon Highway. Without the fourth track, a bottleneck will develop that will prevent the development of a national rail network over the next ten years.
Experts believe that the government made a serious mistake in the project, after assuming full responsibility for any planning flaw discovered in it. The dispute shut down construction work on the fast lane for many months, until a temporary settlement was reached to allow the project's completion.
The fast lane to Tel Aviv is now considered a great success, and the government is planning to double the size of the park and ride lot to 4,000 parking spaces. The Ministry of Transport is also planning to replicate the model, amended as necessary, at the southern entrance to the Ayalon Highway from west Rishon LeZion, as "Globes" was the first to report.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2013
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