Israel Land Authority announced today that the tenders published in recent months would be postponed because of the security situation. 22 tenders with potential construction of 1,430 housing units all over Israel, as well as tenders for commercial space and the sale of construction waste, were involved.
The deadline for submitting bids in these tenders was postponed to October 20, 2014. This is the second time that the ILA has published such an announcement; tenders for the construction of 900 housing units were postponed a month ago until the beginning of September.
The tenders now postponed by ILA are located in Beersheva, Rahat, Dimona, Beit Shemesh, Modi'in Maccabim Reut, Petah Tikva, Tel Aviv-Jaffa, Ramle, Ariel, Harish, Nahariya, Rechasim, Yanoah Jat, Beit She'an, Tamra Zuabiya, Poriya-Naveh Oved, Tzfat, and the Misgav Regional Council.
The tender is significant; it includes housing in central Israel and areas with strong demand. Postponement of the tenders for prolonged periods means a delay in one of the government and housing cabinet's declared goals of increasing the supply of apartments throughout Israel. In addition, the postponement is also liable to make it difficult for ILA to meet the targets set by the government for marketing of housing units in 2014.
The ILA website and list of tender results shows a gloomy picture that highlights the growing shortage of housing units. For example, other than a single tender in Haifa for building rights to a single housing unit that was closed a week ago, the most recent tenders closed for which the winners were announced were on July 20.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2014
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