Electra sees NIS 9b revenue from NTA Green Line tender win

Tel Aviv light rail Photo: Eyal Izhar
Tel Aviv light rail Photo: Eyal Izhar

The Electra, Dan, Alstom consortium has won the tender for the second stage of the Green Line connecting Herzliya and Rishon LeZion.

Yesterday evening, NTA Metropolitan Mass Transit System announced the winners of the tenders to construct the second stage of the Purple and Green line of the Light Rail in the Gush Dan (greater Tel Aviv) area. The bid from the Alstom, Dan and Electra consortium was selected for construction of the second stage of the Green Line. The consortium consisting of Shapir Engineering and Spanish company CAF won the tender to build the Purple Line. Shikun & Binui, Egged, and Chinese companies CRCC and CRRC lost out.

This morning, Electra notified the Tel Aviv Stock Exchange that, following the selection of the consortium’s joint company, of which Electra holds 40.5%, it projects revenue of not less than NIS 9 billion over the concession period. This includes construction grants from the state, which are subject to meeting a number of milestones.

The tender is in a PPP (public-private partnership) format. It covers the planning, construction, supply and financing of the Green Line and the Purple Line of the Light Rail system. The concession period is twenty-five years: five years for construction and twenty years maintenance.

The Green Line is planned to connect Rishon LeZion and Herzliya via Holon and Tel Aviv. There line will have stations in the industrial zones in west Herzliya and Kiryat Atidim in Tel Aviv. Altogether, the line will have 63 stations, four of them underground, and will be 39 kilometers in length.

The winning bidder of the Green Line tender is obliged by the tender terms to complete financial closure within twelve months of the concession agreement being signed.

Earlier this month, Electra announced that, together with Danya Cebus, it had won a NIS 600 million tender by water company Mekorot for the upgrading and development of dozens of water bores in various parts of Israel, over four years. Electra also won a tender by NTA to convert lighting to LED technology, and to provide maintenance services for electricity and lighting installations for five years. This tender too is worth NIS 600 million.

Electra Group president and CEO Itamar Deutscher said of the Green Line tender win, "This project increases our orders backlog to NIS 30 billion, and given the urgent needs of the State of Israel for further substantial infrastructure projects, we see continuation of the group’s growth in concession and infrastructure projects over the coming years."

The share price of Electra is currently up 7.98% on the Tel Aviv Stock Exchange. Shapir Engineering is up 8.75%.

Published by Globes, Israel business news - en.globes.co.il - on January 31, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Tel Aviv light rail Photo: Eyal Izhar
Tel Aviv light rail Photo: Eyal Izhar
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