Cross-Israel Highway - 30 Year Contract and Electronic Toll Collection

Prime Minister Benjamin Netanyahu and Minister of National Infrastructure Ariel Sharon announced this afternoon, from the Prime Minster’s chambers, the four finalists among those developers bidding on the Cross-Israel Highway contract.

At the same time, the Cross-Israel Highway Corporation made the following official announcement: "The government of Israel has decided that the central part of the Cross-Israel Highway, the 90 kilometers between Gedera and Hadera, will be a toll highway funded by extra-budgetary resources. Therefore, the Cross-Israel Highway Corporation is issuing an international offer for tender, for which four companies will compete. These companies have already passed the early selection stage conducted by the company. The licensee awarded the contract will fund, pave, operate and maintain the road."

In this way, by using the private sector, the Cross-Israel Highway will avoid the matter of transportation infrastructure funding. The licensee will receive a return on investment, and expected profits, from tolls collected.

Principles of the License

The license is awarded for a 30-year period. At the end of that time, the highway will revert to the State’s authority. In the first stage, the road will be laid down as a two channel highway, with at least two lanes in each channel. The licensee is obligated to widen the road and its interchanges according to need, with no more than four lanes in each direction.

The toll or per-driver price is a central factor in selecting a licensee. The quality of the bids as regards execution is also seen as important. The groups bidding for tender must submit their offers within half a year.

In order to grant preferential treatment to residents of outlying areas, toll charges will be segmented. The longer the trip, the lower the per-kilometer price.

Electronic Toll Collection

Electronic toll collection is gaining popularity worldwide. The method has already been implemented in California, and two other electronic toll highways, in Toronto and Melbourne, are currently under construction. Many other roads, built before the electronic age, have integrated both human and electronic toll collection.

The electronic method’s advantage is that drivers do not need to stop in order to pay, but are debited automatically. Electronic cards, listing details concerning the vehicle, will be affixed to automobiles. Electronic sensors will be set up along the highway in order to monitor cars. Tolls will be automatically debited from the user’s bank account on a monthly basis, via a standing order or other method.

The method has many additional advantages aside from the savings in time. Electronic tolls lowers the cost of toll-collection, solves the problem of traffic slowdowns at toll booths, and is a so-called space saver of areas otherwise set aside for toll booths. Electronic toll collection brings the Israeli driver into a new era, where Smart Cards will be used for a variety of purposes.

Facts and Figures

The total length of the Cross-Israel Highway will be 300 km., stretching from Ramat Hovav in the south to the Galilee in the north, starting as a two-lane high-speed roadway and ending up as a three or four-lanes in any given direction. The road, which was entirely planned by Israeli engineers will be paved at the highest level of engineering and security. The 140 kilometers between Yokneam and Kiryat Gat are currently in varying levels of planning.

Paving of the 90 kilometers between Hadera and Gedera, called Stage A, will be completed by the year 2002.

Surveys

In 1990, the Public Works Department, commissioned a survey carried out by an Israeli company, in cooperation with US firm GA Partners. The survey proved an overwhelming economic viability, with yields in the dozens of percent. Upon its establishment, the Cross-Israel Highway Corporation conducted another survey, using another firm, that once again proved the necessity for the highway, from a social and economic point of view.

According to traffic forecasts, the volume of daily traffic on Highway 6 in the year 2010 will be over 140,000 vehicles, higher than the present daily volume of traffic on the Geha Highway.

The Goals of the Cross-Israel Highway

1. To bypass the western side of the metropolitan area, between Ashdod and Netanya, and move traffic now passing through the currently always-jammed Dan region.
2. To efficiently disperse and reallocate traffic flowing to and from the metropolitan region.
3. To enable a rapid connection from the southern region to the center and points north, thus opening up development opportunities for trade and employment centers.
4. To integrate the country’s developing eastern backbone, along the Modi’in settlements.
5. To create an opportunity for proper population dispersal from the center to the outlying regions.

The four groups bidding for tender are:

1. The ITV concern, made up of Germany’s Philip Holtzman, US firm Atkinson, Transroute of France, Fougerolle of France, Parsons and Brinkerhoff of the US and Israeli firms Ramat, Shafir, Ravad and Marlaz. The group is led by Marlaz and headed by Ezra Aloni. Financial consulting to the group is provided by Leumi and Partners. Bank Leumi may participate in the investment.

2. The Israel Kingsway group, made up of Ashtrom Engineering, Reichman Brothers, Properties & Building, Israel Corporation, Discount Investments, PEC, the Harel Hamishmar group, Dragados of Spain and Tarmac of the UK. The group is lead by Ashtrom.

3. A group comprised of Shikun & Binui Investments, Mashav, Autostrada of Italy, plus firms from Germany and France. Group leader is Shikun & Binui.

4. The Derech Eretz concern, made up of the Societe General du Enterprise of France, US concerns Hughes and General Motors, CHIC of Canada, Africa-Israel and Alon. The contractors associated with this group are Malibu Israel and Kfar Giladi quarries. The group is led by Africa-Israel.