In September, the Ministry of Construction and Housing and the Israel Land Authority announced a tender for two lots in Or Akiva, near Hadera, intended for the construction of 225 housing units each, for a total of 450 units. This is a significant tender, as it involves a large number of units in central Israel. Bidding closed on December 2, 2013.
Sources inform ''Globes'' that a number of real estate companies submitted bids for the land. However, two and a half weeks after the tender closed, the Ministry of Construction and Housing and the Israel Land Authority have not bothered to meet to open the envelopes and announce who has won the tender.
“It is not clear why opening envelopes should take three weeks and not three days,” developers who submitted bids told “Globes,” “What is more important to the Minister of Housing than releasing land for the construction of 450 housing units in the center of the country?” The developers complained that, aside from the uncertainty of the situation, they are carrying the financial burden of the guarantees that they were required to deposit with their offers.
The Ministry of Construction and Housing issued the following statement in response: “The tender opening for 450 residential housing units and commercial areas in Or Akiva, which closed two weeks ago, was meant to take place this past Sunday, with representatives from the tender committee and the various ministries. Due to the snow, the tender opening was postponed by a week, and is expected to take place this coming Sunday. The Ministry of Construction and Housing and the Israel Land Authority will continue to advance the marketing of land and the expansion of the apartment supply throughout the country as an important means of reducing the price of apartments and easing the housing crisis. The hard work is expected to increase the scope of marketing, in accordance with the ambitious goals set out by the government.”
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2013
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