PPP Projects in Israel - Last update: January, 2021
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PPP Projects in Israel Last update: January, 2021
PPP Projects in Israel
1) General Overview
The current scope of infrastructure investment in the State of Israel is significantly lower than comparable
countries around the world. This gap can be seen in traffic congestion and the low percentage of electricity
PPP Projects in Israel
production from renewable energy.
Therefore, in 2017, Israel’s Minister of Finance appointed an inter-ministerial team to establish a national
strategic plan in order to advance and expand investments in infrastructure projects. According to the team's
conclusions, while in OECD countries the stock of economic infrastructure (transportation, water and energy)
forms 71% of the GDP; in Israel it constitutes only 50% of the GDP.
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PPP PROJECTS
(Public Private Partnership)
One of the main recommendations of the team was to substantially increase
the investment in infrastructure by 2030. According to the team's evaluation, Such projects feature long-term
agreements between the State and a
where the present scope of infrastructure investments is maintained, the
concessioner: the public sector
existing gap from the rest of the world will further grow; in order to reach
transfers to the private sector the
the global average, a considerable increase of the infrastructure investments responsibility for providing a public
in Israel is required through 2030. infrastructure, product or service,
PPP Projects in Israel
including the design, construction,
The team further recommended to, inter alia: develop a national
financing, operation and
infrastructure strategy for Israel; improve statutory procedures; establish
maintenance, in return for payments
new financing tools for infrastructure investments and adjust regulation in based on predefined criteria. At the
order to enhance such investments; and establish a performance end of the concession agreement term
management system. Accordingly, there is now a major expansion of the (typically 25-30 years), the projects
infrastructure investment, mostly in the field of public transport. The are transferred back to the State for
investment is expected to grow even further once the team's full no additional compensation.
recommendations are implemented. The PPP Model enables an optimal risk
allocation between the private sector
and the public sector, as each party
A significant part of the increase of infrastructure investments is anticipated assumes the risks it is most fit to
manage.
to be executed based on Project Finance procurement strategy mostly
PPP projects have been promoted in
through PPP Model (Public-Private Partnerships).
Israel for over two decades in the
This document provides a review of Public-Private Partnership projects in fields of transportation, energy,
the State of Israel – both existing PPP Projects (during construction and environment, water and construction.
operation stages) and anticipated projects. 2
2) Promotion of PPP Projects in Israel
PPP projects in Israel are promoted by several governmental authorities:
1) The Infrastructure and Projects Division at the Accountant General Department in the Ministry
of Finance – the division is composed of the Accountant General’s staff and the PPP Projects Unit located
at the governmental company, Inbal. The division promotes PPP projects in various sectors (transportation,
energy, environment, water and construction) through Inter-ministerial Tender Committees headed by a
PPP Projects in Israel
representative of the Accountant General.
2) The Transfer to the South Administration in the Ministry of Defense – the Ministry of Defense
promotes projects of development of several army bases through the Transfer to the South Administration,
which manages the transfer of IDF units from the center of Israel to the Negev area in the south, as part
of the strategic plan to support and develop the Negev area.
3) The Governmental Building Administration at the Accountant General’s Department in the
Ministry of Finance – the Governmental Building Administration is a branch of the Assets, Procurement
and Logistics Division at the Accountant General in the Ministry of Finance. It is in charge of governmental
building, including head offices (ministries), district and regional complexes, courts and other construction
projects.
4) NTA, Metropolitan Mass Transit System Ltd – a governmental company in charge of planning and
establishing mass transit systems in the metropolis of Tel Aviv. The company promotes projects through
standard public procurement and by using the PPP Model.
5) Cross Israel Highway – a governmental company in charge of planning and establishing Cross Israel
Highway segments ('Highway 6') and a light rail line in the northern metropolis of Haifa. In addition, the
company acts as an Implementing Authority for Highway 6, Carmel Tunnels and the Fast Lane to Tel-Aviv.
The company promotes projects through standard public procurement and by using the PPP Model.
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3) Existing PPP Projects in the State of Israel
The table below presents the main PPP projects that have been promoted in Israel over the last two decades
and that are in their operation stage or construction stage. The estimated total cost of construction of these
projects is approximately 50 billion1 NIS.
Project Project Description Government Status Financial End ofConcessioner Shareholde Main Construct
al Authority Closing /Operatio Concessi rs in the Finance ion cost
PPP Projects in Israel
Constructi n on period Concession Providers (billions
on Commen er of NIS)
Commenc cement
ement
Transportation
Route 431 Crosswise highway from The Projects Operation 2006 Q1/2009 2031 Netivey Danya Hapoalim; 2.0
Anava Interchange to Division Hayovel Cebus; IIF Clal; Menora;
Ayalon Highway, Fund Amitim;
approx. length of 22 Harel; others
km.
Fast Lane to Tel Park & Ride parking lot at The Projects Operation Q3/2007 Q1/2011 2037 Fast Lane Shapir Leumi; 0.5
Aviv Shapirim providing free Division Migdal
shuttle service to central
Tel Aviv, and a
designated lane that
prioritizes public
transport, shuttle
services and HOVs. The
remaining capacity is sold
to private vehicles for a
fee
The Carmel Two tunnels crossing The Projects Operation Q1/2006 Q4/2010 2040 Carmelton Shikun & Discount; 1.2
Tunnels Haifa from east to west, Division Binui; Harel
approximate total Allied Insurance
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1
Including finance costs.
Project Project Description Government Status Financial End ofConcessioner Shareholde Main Construct
al Authority Closing /Operatio Concessi rs in the Finance ion cost
Constructi n on period Concession Providers (billions
on Commen er of NIS)
Commenc cement
ement
length of 6.5 km, 5 km
of which are tunnels
PPP Projects in Israel
Highway 6, Cross-Israel Highway; The Projects Operation Q4/1999 Q3/2002 2029 Derech Eretz Noy Fund; Hapoalim; 6.0
Central Segment electronic toll road; Division IIF Fund Psagot;
approximate length of Migdal; Clal;
106 km, from Ein Tut Harel
Interchange in the Insurance;
north to Sorek Menora
Interchange Mivtachim;
Highway 6, The northern Cross- The Projects Operation Q1/2015 Q1/2019 2049 Cross North Shapir; Hapoalim; 2.8
Segments Israel Highway: Division Noy Fund; Deutsche
3+7 between Yoqne'am and Leumi; Bank
Somekh; approximate Pizzaroti
total length of 19 km
Jerusalem Light The line connects Pisgat The Projects Operation Q1/2006 Q4/2011 2036 Citypass IIF Fund; Hapoalim; 2.2
Rail – Red Line Ze'ev in the north with Division Ashtrom; Leumi
Mount Herzl through Harel
the city center;
approximate length of
14 km, including 23
stations
Road 16 An additional entrance The Projects Construction Q4/2019 Q2/2023 2044 Shapir Shapir; Hapoalim; 1.1
road to Jerusalemt, Division (predict Pizzarotti Pizzarotti Clal
connecting Road no. 1 ed) Highway 16 Insurance
and Menachem Begin LTD.
Boulevard; approx.
length of 5 km,
including tunnels.
Jerusalem Light connection M.Scopus to The Projects Construction Q4/2020 Q2/2023 2045 Chapir Shapir; CAF Hapoalim 7.0 5
Rail – Jnet Gilo with a branch to Division (in (predict
(Green Line + the commercial and practice) ed)
Project Project Description Government Status Financial End ofConcessioner Shareholde Main Construct
al Authority Closing /Operatio Concessi rs in the Finance ion cost
Constructi n on period Concession Providers (billions
on Commen er of NIS)
Commenc cement
ement
extensions of the residential areas of
Red Line) Malha + extensions of
the existing Red Line.
Approx. length of the
PPP Projects in Israel
line – 27 km, including
50 stations.
Water
Ashkelon Reverse osmosis The Projects Operation Q1/2003 Q3/2005 2027 VID Keystone; Leumi 1.1
Desalination desalination facility, Division Odem-
Facility production capacity of Veridis
118 million m3 a year;
includes an independent
power plant that provides
electricity to the facility.
Palmahim Reverse osmosis The Projects Operation Q1/2005 Q2/2007 20292 GESM Generation Hapoalim 1.0
Desalination desalination facility, Division , migdal
Facility production capacity of
90 million m3 a year.
Hadera Reverse osmosis The Projects Operation Q4/2007 Q4/2009 20323 H2ID Shikun & Hapoalim; 1.7
Desalination desalination facility, Division Binui; IDE EIB; Clal
Facility production capacity of Group
137 million m3 a year.
Sorek A Reverse osmosis The Projects Operation Q2/2011 Q3/2013 2037 SDL Dan Capital Hapoalim; 1.7
Desalination desalination facility, Division EIB
Facility production capacity of
150 million m3 a year;
includes an
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2
Second expansion of concession period ends at 2027.
3
Last expansion of concession period ends at 2027
Project Project Description Government Status Financial End ofConcessioner Shareholde Main Construct
al Authority Closing /Operatio Concessi rs in the Finance ion cost
Constructi n on period Concession Providers (billions
on Commen er of NIS)
Commenc cement
ement
independent power
plant that provides
PPP Projects in Israel
electricity to the facility.
Ashdod Reverse osmosis The Projects Operation Q4/2011 Q4/2015 2038 ADL Mekorot EIB; 1.5
Desalination desalination facility, Division Hapoalim
Facility production capacity of
100 million m3 a year.
Sorek B Reverse osmosis The Projects Construction S.M.S IDE 2.2
Q2/2020 Q1/2023 2048 IDE KFW; ;Leumi
Desalination desalination facility; Division (predicted) EIB
Facility approximate production
capacity of 200 million
m3 a year. Includes a
planned construction for
an independent power
plant which will supply
electricity to the facility.
Energy
Ashalim – Thermo-solar power The Projects Operation Q2/2015 Q2/2019 2040 Negev Shikun & Hapoalim; 3.7
thermo-solar – plant using parabolic Division Energy Binui; Noy EIB; OPIC
PLOT A trough technology, Fund; TSK
generation capacity of
121 MW/
Ashalim – Thermo-solar power The Projects Operation Q2/2014 Q2/2019 2039 Megalim Noy Fund; Hapoalim; 2.9
thermo-solar – plant with a solar Division BrightSource EIB; Menora;
PLOT B reflection tower, ; GE Harel; others
generation capacity of
121 MW.
Ashalim – PV1 Power plant using The Projects Operation Q4/2013 Q4/2017 2038 Ashalim Sun ClalSun; Hapoalim; 0.3
photo-voltaic Division EDF Energy Clal 7
Project Project Description Government Status Financial End ofConcessioner Shareholde Main Construct
al Authority Closing /Operatio Concessi rs in the Finance ion cost
Constructi n on period Concession Providers (billions
on Commen er of NIS)
Commenc cement
ement
technology, generation
capacity of 30 MW.
Environment
Waste treatment Municipal Solid Waste The Projects Construction Q1/2021 Q4/2024 20504 Zero Waste Shikun & Hapoalim 0.7
PPP Projects in Israel
Facility at the treatment facility in the Division Binui; GES
Shafdan area Shafdan area;
approximate treatment
scope – 1,000 tons of
waste per day; the
facility includes an
anaerobic digestion
processes for the
production of green
energy recyclables and
agricultural compost
Construction
National Police National Police The Projects Operation Q1/2012 Q1/2015 2037 Policity Shikun & Discount; 0.8
Academy Academy in the area of Division Binui; G4S Harel
Beit Shemesh;
approximate size of 230
dunam, including
operation, catering and
training arrays
Ashdod Medical A hospital, including all The Projects Operation Q2/2012 Q2/2017 2022 Assuta Assuta Leumi 1.3
Center the departments Division Ashdod
required for a public
hospital, with
approximately 300 beds
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4
AnticipatedProject Project Description Government Status Financial End ofConcessioner Shareholde Main Construct
al Authority Closing /Operatio Concessi rs in the Finance ion cost
Constructi n on period Concession Providers (billions
on Commen er of NIS)
Commenc cement
ement
(and an option for
additional 400 beds).
PPP Projects in Israel
The Training offices, classrooms, The Ministry Operation Q2/2012 Q1/2015 2037 Mabat Electra; Hapoalim; 1.6
Complex – the warehouses and welfare of Defense LaNegev Minrav; Amitim;
Training Bases facilities - for the Binat; Noy Menora;
City training bases Fund Psagot;
reloacated from Tzrifin
Base; designated for
training for combat
supporting units
Teleprocessing The project includes the The Ministry Construction Q4/2018 Q1/2023 2044 The Shikun & Leumi; Clal; 2.6
Complex in Be'er construction of buildings of Defense (predict Technological Binui; Amitim; First
Sheva (offices and welfare ed) Teleprocessin Africa International
facilities) for units of the g Complex in Israel Bank
Teleprocessing the Negev Properties
Department, the South
Command Headquarters
and technological units
of the Air Force
Government complex in Natanya; Court The Construction - - - - - 1.7
houses in Tiberias, Safed and Hadera; Governmental
District complexes in Jerusalem and Building
Nazareth Illit; Parking lot 24 and Ministry Administration
of Justice in Jerusalem
Court complex in Tel Aviv; Court houses The Operation - - - - - 1.8
in Lod, Ashekelon, Petah Tikva and Governmental
Herzliya; HaLeom parking lot, Energy Building
center and Genery 2 in Jerusalem Administration
94) Anticipated PPP Projects
The table below presents the main projects that are promoted through PPP Model in Israel. The projects
included in the table are in the stage prior to Financial Closing, in various tender stages or in the pre-tender
stage. The estimated total cost of construction of these projects is approximately 50 billion5 NIS.
PPP Projects in Israel
Project Project Description Governmenta Status Anticipated Anticipated Anticipated Anticipated
l Authority Pre- Tender Financial Operation
Qualification Publication Closing/ Commence
Publication Construction ment
Commenceme
nt
Transportation
Fast lanes in Gush Fast lanes alongside Road 2 and The Projects Tender Q3/2016 Q1/2019 Q4/2021 Q3/2025
Dan Road 20, from Rishon LeZion to Division (in (in
Road 57, for public transport, practice) practice)
Shuttles, HOVs and toll-paying
vehicles, including two Park & Ride
parking lots with thousands of free
spaces at Shefayim Interchange
and Mevo Ayalon Interchange,
with free shuttle services
International International airport, The Projects Pre-tender Q2/2022 Q2/2023 Q2/2025 2028
Airport complementary to Ben-Gurion Division
Airport; the airport will be
designed to serve mostly Low-Cost
airlines
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5
Including finance costs.Project Project Description Governmenta Status Anticipated Anticipated Anticipated Anticipated
l Authority Pre- Tender Financial Operation
Qualification Publication Closing/ Commence
Publication Construction ment
Commenceme
nt
Jerusalem Light The line will connect the The Projects Tender Q2/2020 Q2/2021 Q1/2023 2027
Rail – Blue Line neighborhood of Ramot in the Division (in
PPP Projects in Israel
north and Gilo in the south; The practice)
line is 28 km long and includes 46
stations.
Tel Aviv Light Rail – The line connects the southern NTA Tender Q3/2018 Q2/2019 Q1/2022 2027
Green Line parts of the metropolis OF Tel-Aviv (in (in
(Holon and the margins of Rishon practice) practice)
LeTzion) and its northern parts
(Herzliya) to Tel Aviv; approximate
length of the line – 39 km,
including 61 stations
Tel Aviv Light Rail – The line connects the eastern NTA Tender Q3/2018 Q2/2019 Q1/2022 2026
Purple Line areas of the metropolis of Tel Aviv (in (in
and the center of Tel Aviv; practice) practice)
approximate length of the line 29
km, including 43 stations.
Haifa–Nazareth The line connects Cross Israel Tender Q2/2020 Q4/2021 Q1/2024 2027
Light Rail Haifa to Nazareth and villages Highway (in
along its route; approximate length practice)
of the line – 41 km, including 20
stations and 16 Park and Ride
parking lots
Water
Western Galilee Reverse osmosis desalination The Projects Tender Q1/2020 Q4/2020 Q2/2022 Q4/2024
Desalination facility Division (in (in
Facility with a production capacity of 100- practice) practice)
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200 million cubic meters per yearProject Project Description Governmenta Status Anticipated Anticipated Anticipated Anticipated
l Authority Pre- Tender Financial Operation
Qualification Publication Closing/ Commence
Publication Construction ment
Commenceme
nt
Water Treatment Treatment facility for The Projects Tender Q1/2020 Q1/2021 Q4/2022 Q1/2025
Facility –the Sharon contaminated groundwater at the Division (in
area Military Industrial Complex in the practice)
PPP Projects in Israel
Sharon area
Energy
Ashalim – PV2 (6) Power plant for electric power The Projects Financial Closing Q1/2016 Q1/2017 Q2/2021 Q2/2022
production using photo-voltaic Division (in practice) (in practice)
technology; anticipated capacity of
40 MW
Dimona – PV Power plant for electric power The Projects Tender Q1/2020 Q4/2020 Q4/2022 Q4/2024
production using photo-voltaic Division (in practice) (in practice)
technology, and electricity
storage; anticipated approximate
capacity of 300 MW including 50
MW of energy storage.
Ashalim- PV3 Power plant for electric power The Projects Pre-tender Q2/2021 Q4/2021 Q1/2024 Q1/2025
production using photo-voltaic Division
technology; anticipated
approximate capacity of 100 MW
including energy storage.
Natural gas -fired Natural gas power plants The Projects Pre-tender Q1/2021 Q4/2021 Q2/2023 Q2/2026
power plants Division
Environment
Waste Treatment Waste treatment facility, using an The Projects Tender Q4/2019 Q1/2021 Q3/2022 Q4/2025
Facility - Ma'ale incineration method (waste-to- Division (in
Adumim energy). practice)
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Contract awardedProject Project Description Governmenta Status Anticipated Anticipated Anticipated Anticipated
l Authority Pre- Tender Financial Operation
Qualification Publication Closing/ Commence
Publication Construction ment
Commenceme
nt
Construction
Unitary Supply District Logistical Centers in The Ministry Financial Closing Q2/2017 Q2/2018 Q2/2021 Q4/2025
PPP Projects in Israel
Centers – District Mishmar HaNegev, Beit Naballa of Defense (in (in
Logistical Centers and Netafim; the concessioner will practice) practice)
be responsible for the maintenance
of the structures and compounds
to be constructed by it and for the
operation of logistical warehouses
in Beit Naballa and Mishmar
HaNegev.
The Intelligence The Intelligence Complex in the The Ministry Tender Q3/2016 Q2/2018 Q2/2022 Q2/2027
Complex Negev, next to Omer; the project of Defense (in (in
includes construction of buildings practice) practice)
(offices, workshops, warehouses
and welfare facilities) for units of
the Intelligence Corps, as well as
provision of maintenance and
operation services throughout the
concession term
"Wide Horizon" Multi-branch base in Ramla next to The Ministry Tender Q1/2018 Q3/2019 Q3/2022 Q1/2027
("Ofek Rachav") – a the Home Front Command; should of Defense (in (in
multi-branch base in include corps headquarters, a practice) practice)
Ramla military recruiting office, a
reception and sorting base, a
regional clinic and more
Governmental Approx. 70,000 m2 for Governmental Pre-tender Q2/2021 Q2/2022 Q2/2026
Offices governmental offices above the Building
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LRT Depot at Jerusalem. AdministrationProject Project Description Governmenta Status Anticipated Anticipated Anticipated Anticipated
l Authority Pre- Tender Financial Operation
Qualification Publication Closing/ Commence
Publication Construction ment
Commenceme
nt
Governmental and Government complex and court at Governmental Pre-tender Q2/2021 Q1/2022 Q1/2025
court complex Afula Building
Administration
PPP Projects in Israel
Governmental Complex for several governmental Governmental Pre-tender Q4/2021 Q2/2022 Q2/2026
Teleprocess teleprocess units including the Building
complex Israel Police and the Government Administration
ICT Authority at Jerusalam
In addition, several infrastructure projects are promoted by the private sector in the field of energy
(which require licenses from the Israeli Electricity Authority) using Project Finance methods. These
projects include power plants that use various technologies, such as cogeneration, photo-voltaic
production, wind power and pumped-storage hydroelectricity. For more details about these projects see
the "2019 Infrastructure for Growth" report of the Israeli government, which is published on the
governmental website. Furthermore, as part of the reform in the electricity market, 'Alon Tavor' plant
have been sold, and the sale of following four more power plants (which are currently owned by the
Israel Electric Corporation Ltd) is anticipated: Ramat Hovav7, Reading, Hagit and Eshkol.
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