The Tel Aviv light rail infrastructure systems tender was closed last Thursday. Only two international groups submitted bids in the NIS 2.4 billion tender.
The first group consists of Indian company Texmaco and two Israeli companies: Rafael Advanced Defense Systems Ltd. and Shapir Engineering and Industry Ltd. (TASE:SPEN). The second group in the tender is led by Chinese company CRTG, and also includes German railway company Deutsche Bahn and EEB, another Chinese company.
The tender includes the construction of electrical, communications, and railway track systems for the light rail. NTA Metropolitan Mass Transit System Ltd., which is managing the project, believes that the tender results will be published within a few weeks. The total cost of the project is estimated at NIS 17 billion, and the projected completion date is October 2021.
A year ago, NTA decided to split the project into two separate tenders: a systems tender and a signals tender, after the two bids submitted for the tender were billions more than the previous estimates.
NTA's NIS 2.4 billion estimate for the infrastructure tender was based on an assessment by the PB company, which is managing the technical aspects of the project, and was confirmed by Aegis, which is advising the Ministry of Finance Accountant General section.
Railway sector sources have insisted all along that NTA's estimate does not reflect the extent of the project, because it ignores many risks incurred in the tender. Several European groups that did not participate in the tender because of the price also voiced severe criticisms today, saying, "NTA decided to use the price as the decisive criterion. That is the reason why only the Indians and the Chinese bid. Where are Alstom, Siemens, and all the other groups that participated in the light rail tender in Jerusalem?"
Published by Globes [online], Israel Business News - www.globes-online.com - on December 24, 2017
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