As the financial closing of the Tel Aviv Light Railway Project faces further delays, it has now emerged that the Ministry of Transport has failed to meet the commitments it made when the project was launched. Sources inform ''Globes'' that the Ministry of Transport and the NTA Metropolitan Mass Transit System have not yet completed the draft proposal for the restructuring of public transport services in Tel Aviv.
The project is designed initially to introduce the "Red Line" in the public transportation system so as to create synergy between the various public transport operators. The program was supposed to include, among other things, the deployment of feeder bus lines along the Red Line network adjacent to stations on the Light Railway route, where they would offer connecting journeys for passengers.
Finalizing the proposal was one of the critical measures that the government was supposed to have completed so that the franchisee can move forward, so this issue will cause yet more delays in the project's financial closing.
In their recent talks with the government, the banks made it clear that no agreement could be reached on the financing for the project until a comprehensive transportation program was in place, since this will affect projected passenger numbers. Added to this is the row between the Ministry of Finance and the Ministry of Transport and the Tel Aviv municipality over the route for the "Green Line", the Light Rail's other line, whose delay could also affect projected passenger numbers on the Red Line.
As "Globes" first reported, the MTS consortium, headed by Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK), Siemens AG (NYSE: SI; XETRA: SIE), and Egged, asked to postpone the financial closing of the estimated NIS 10-12 billion Light Rail project, in view of the prevailing crisis on the markets. The government agreed to postpone the closing to September 25, but it is likely to be postponed again.
Published by Globes [online], Israel business news - www.globes-online.com - on August 28, 2008
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