Franchisee CityPass must begin operating the light railway in September 2010.
Sources inform ''Globes'' that the government has rejected the request of Jerusalem light railway franchisee CityPass for a further nine-month extension for inaugurating the service to June 2011, further exacerbating tensions between them.
Last week, the government notified CityPass of its position that operation of the Jerusalem light railway must begin in September 2010, as stipulated in the contract signed last year. The government's letter states, "The supervisory authority was surprised at the request by the franchisee for an extension of the timetable for the project. As you know, the deadline for completing the project was set at September 8, 2010, and this date remains as the binding determining date for the franchisee."
The letter means that any further delay in the project will be at the expense of the operating period granted to CityPass, and it is liable to lose operating revenue from the light railway.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2009
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