Cabinet unanimously approves Eilat railway

The 350-kilometer high-speed Tel Aviv-Eilat railway is supposed to cut travel time to two hours.

The cabinet today unanimously approved the 350-kilometer high-speed Tel Aviv-Eilat railway, which is supposed to cut travel time to two hours. The line is scheduled to open five years from the start of construction.

The Ministry of Finance will probably object to financing the project from the budget. The project's preliminary cost estimate is NIS 7 billion, just for laying the rail, and could go as high as NIS 30 billion, including rolling stock, double tracking the line, electrification, and peripheral equipment.

The option of a private franchisee under a BOT (build, operate, transfer) project, as was done for Road 6, would probably be found to be economically unfeasible.

The Chinese option is based on a government-to-government agreement, with construction going to a Chinese government company. The Ministry of Transport believes that such an agreement will render the need for a tender unnecessary.

Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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