Jerusalem light rail franchisee Shapir Engineering and Industry Ltd. (TASE: SPEN) and its Spanish partner CAF have closed a project financing agreement for the construction and operation of a network of lines. As part of the project, which will cost an estimated NIS 5.1 billion, the existing Red Line will be extended, and the new Green Line will be built.
In the first stage Shapir will borrow NIS 3.7 billion (NIS 2.8 billion over the next two years and €220 million after that). The financing will be extended by a consortium of banks led by Bank Hapoalim (TASE: POLI) and including First International Bank of Israel (TASE: FTIN), Altshuler Shaham Ltd. and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL).
In August 2019, TransJerusalem J-Net Ltd., owned by Shapir and CAF, won the tender put out by the Ministry of Finance, Ministry of Transport and Jerusalem Municipality to operate J-Net, the Jerusalem light rail network. Shapir and CAF are committed to operating the existing Red Line between Mount Herzl and Pisgat Zeev and extending its northwards to Neve Yaakov and southwards to Hadassah Hospital in Ein Kerem. Shapir and CAF will also build the Green Line from the Hebrew University on Mount Scopus and to Malkah and Gilo with a branch line to the Hebrew University's Givat Ram campus and Givat Shaul.
Shapir and CAF will build 27 kilometers of tracks and 50 stations. They will procure 100 carriages and build a depot near the Malka shopping mall. TransJerusalem J-Net will begin and taking over from current franchisee CityPass and operating the Red Line in 2022 and will start operating the Green Line by 2025.
Published by Globes, Israel business news - en.globes.co.il - on November 8, 2020
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