Ministry of Transport director general Ben Zion Salman: The contractors have notified me that are about to close financing with Bank Hapoalim.
Ministry of Transport director general Ben Zion Salman says the Carmel Tunnel project will begin in April 2004. He said the contractors had notified him that they were in the final stages of closing financing with Bank Hapoalim (LSE:BKHD; TASE:POLI), and promised they would begin work on that date. The Carmelton group, the designated contractor for the Carmel Tunnel Economic Development Project in Haifa, comprises Spain's Dragados (Madrid:DRAG) (40%), Property and Building (TASE:PTBL) (20%), Ashtrom (20%), and FIBI Holdings (TASE:FIBI) (20%).
Salman added that the Carmel Tunnel was an example of a BOT (build, operate, transfer) project selected for expedited procedures, which ultimately led to protracted and unreasonable delays.
The Carmel Tunnel is a 5-km tunnel under Mount Carmel in Haifa from the Check Post to the coastal highway at the southern approach to the city. It includes an interchange midway to provide access to the Central Carmel. The project's cost is $170 million in 1997 terms. The project was delayed by statutory problems and then by Israel Discount Bank's (TASE:DSCT) announcement that it was withdrawing its financing.
Published by Globes [online] - www.globes.co.il - on September 25, 2003