Minister of Transport Miri Regev announced yesterday after surveying progress on the Tel Aviv light rail Red Line that she plans taking responsibility for the Metro project out of the hands of the NTA Metropolitan Mass Transit System, which has been responsible for the light rail. It is believed that Regev wants to transfer the project Netivei Israel National Transport Infrastructure Co., whose chairman Yigal Amadi is a close confidante. However, such a decision would require cabinet approval.
A statement from Regev's office said, "NTA has exceeded by project's budget by NIS 3 billion. NTA has exceeded the timetable by more than 18 months (the original target of October 2021 was postponed until November 2022 then March 2023)."
Regev herself added, "As I said before, there will be consequences and implications for companies that do not meet their targets, certainly when it comes to targets they themselves set. That's how it has been in the past and that's how it will be in the future."
The statement from her office added, "In previous discussions held in the minister's office almost three months ago (5.2.23) NTA's CEO said that the light rail would be ready to open at Passover, and in the discussion the minister gave an extension to Independence Day." There is still no official starting date for the Red Line.
NTA has indeed overrun deadlines in all the projects under its responsibility, however, the transfer of the huge NIS 150 billion Metro project from NTA to another company may cause further delays in the preparation and completion of the project and its completion. This happened when Regev transferred the Haifa cable car from Yefe Nof to Netivei Israel - the very transfer resulted in various delays for months in the opening of the project that was already completely ready.
This also contradicts the budget agreement with the Ministry of Finance and the Economic Arrangements bill in which states that NTA will be responsible for the Metro and the construction of the lines, while another company will be established to oversee operations. Thus the Ministry of Finance is expected to strenuously oppose.
Regev's method, which was also used during Israel Katz's time as Minister of Transport, includes transferring projects from company to company as a means of control and punishment. But these transfers cause delays in projects that are vital to transport and the Israeli economy. This is how the Ayalon's fourth railway track was postponed for two years following the transfer made by Regev between Netivei Israel and Israel Railways. Therefore, industry sources believe that even without the Red Line delays, Regev would have found a reason to move the project from NTA.
All this while Likud member Yigal Amadi is chairman of Netivei Israel, and dozens of new jobs that will grow into hundreds in the coming years as the Metro project will require staffing.
NTA chairwoman Maya Liquornik believes that due to the unique experience gained by the company in carrying out the light rail project, it would not be right to transfer implementation of the Metro to another company.
Published by Globes, Israel business news - en.globes.co.il - on May 3, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.