Ministry of Finance accountant general Yali Rothenberg is today publishing the tender for operating the congestion charge in the Tel Aviv metropolitan region. The tender includes planning, construction, operation and maintenance of the congestion charge project in the Tel Aviv metropolitan region, which is due to be launched, according to the law enacted, in 2026 but will probably be postponed by one year.
The content of the project for which the tender will be published includes the sites where toll gates will be placed, contracting work involved in construction, ensuring operation of the charge collection system, maintenance of infrastructure and systems and operation of a customer service center for collecting the charge, with the contract period being for 22 years, and submission of bids will be in the second half of the year.
Deal with Miri Regev
Legislation to apply the congestion charge was passed in the previous government's Economic Arrangements Law in 2021. After Miri Regev was appointed Minister of Transport in early 2023, she froze the tender procedures and has since been caught up in a highly publicized dispute with the Ministry of Finance over the application of the charge and enforcement of the law.
However, in recent months, there has been a sign of calm between the parties. The Ministry of Finance is publishing the tender this time so that Regev cannot cancel it, while she, for her part, will receive, according to sources, an impressive compensation package, such as financing and budgeting for the Kiryat Shmona railway project, as well as other projects.
Government ministries have denied any such deal in question, as reported by "Globes" last year, but in practice the congestion charge project is moving forward, as is the project to build rail link Kiryat Shmona. Netivei Israel CEO Nissim Peretz told the Globes' "Infrastructure for the Future" conference earlier this month that work on the railway will begin later this year.
NIS 1.3 billion per year
Issuing the congestion charge tender is another major milestone on the way to implementing the congestion charge in Israel, which will generate NIS 1.3 billion annually for the state coffers, and which will finance public transport projects as well as the Metro. The Ministry of Finance has apparently proposed to Regev to finance the railway to Eilat from the same congestion charge revenues. According to the congestion charge law, there will be three rings in the Tel Aviv metropolitan region: an inner, middle, and outer ring. The congestion charge will apply to vehicles crossing between these rings from 6:30 am to 10:00 am. For vehicles heading towards the center, the charge will be NIS 10 each in the middle and inner rings, and NIS 5 in the outer ring. Between 3 pm and 7 pm, the charge will be NIS 5 in both directions in the inner and middle rings, and NIS 2.5 in the outer ring.
Who will receive an exemption?
During the discussions on the bill in the Knesset Finance Committee, it was decided to exempt motorcycles and emergency and rescue vehicles from the congestion charge. After much debate regarding taxis, it was decided that they would pay 50% of the charge, while truck drivers would pay double the charge.
Congestion charges went into effect in New York at the beginning of the year, joining London, Stockholm and other cities. The charges have revolutionized transportation. New york recorded a 7.5% decrease in traffic, with travel times at major crossings such as the Holland and Lincoln tunnels dropping by more than 40% in the morning hours. There was a decrease of about 35% on the Williamsburg Bridge, and a 21% decrease on the Brooklyn Bridge.
Published by Globes, Israel business news - en.globes.co.il - on February 18, 2025.
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