PPP Projects in Israel
Last update: July, 2020 PPP Projects in Israel 1 in
GDP; countries
comparable low percentage of electricity the the team team to establish a national strategic
According to the team's conclusions, while while conclusions, team's the to According
. outages outages and
ministerial - power ,
in infrastructure projects infrastructure in
s traffic congestion in
. Minister Minister of Finance appointed an inter
e energy e Israel’s This This gap can be seen to advance and expand investment expand and advance to
in order order in General Overview
he he current scope of infrastructure ininvestment the State of Israel is significantly lower than Israel it constitutes only 50% of the GDP. the of 50% only constitutes it Israel plan plan in OECD countries the stock of economic infrastructure (transportation, water and energy) forms 71% of the production from renewabl from production Therefore, in 2017, T around the world. 1) PPP Projects in Israel PPP Projects in Israel 2
, . risk risk
term term - At At the
.
. optimal construction
to the State for Partnership) the the public sector back back enables an an enables in in return for payments PROJECTS compensation
30 30 years), the projects : - nt, water and nt, water 25 the the risks it is most fit to
PPP PPP of the concession agreement term term agreement concession the of
typically srael for over two decades in the (Public Private Private (Public ( are transferred no additional Model PPP The allocation between the private sector and the public sector, as each party assumes manage. PPP projects have been promoted in I fields of environme transportation, energy, Such projects agreements between the State feature and a long concessioner transfers to the private responsibility sector for the providing a public infrastructure, product or including service, the design, financing, construction maintenance, operation based on predefined criteria end and
) be PPP PPP there there where where in the State State the in
existing existing gap through through
national national infrastructure
artnership projects artnership P ; ; in order to reach the global average, Private Private -
. during during construction and operation stages nce management system. Accordingly, Accordingly, system. management nce procurement procurement strategy mostly
performa
increase of infrastructure investments is anticipated to is anticipated investments ofincrease infrastructure Project Project Finance
xisting xisting PPP Projects ( establish a establish recommendations recommendations of the team was to substantially increase the The investment is expected to grow even further once the team's the once further even grow to expected is investment The
e . Private Partnerships). Private
- and and main both both
based based on nt part of the ofpart nt the – 2030.
a major expansion of the infrastructure investment, mostly in the field of
transport recommendations are implemented are recommendations of Israel projects. anticipated and Model (Public Model Public of review a provides document This A significa executed public public full investments; investments; is now strategy for Israel; improve statutory procedures; establish new financing tools for for tools financing new establish procedures; statutory improve Israel; for strategy infrastructure investments and adjust regulation in order to enhance such through The team further recommended to, inter alia: develop a from the rest of the world will further grow a considerable increase of the infrastructure investments in Israel is required investment investment in infrastructure by 2030. According to the team's evaluation, the present scope of infrastructure investments is maintained, the One One of the PPP Projects in Israel 3 at the Aviv. Aviv. The - . the company
, located located , as part of the in in the Ministry of ctors (transportation, in the Ministry of Finance of Ministry the in
. In addition Department Department area in the south
Tender Committees headed by a ’s ’s
the the Ministry of Defense promotes
of of Haifa in in various se
–
Department
ministerial projects - to the Negev
nmental nmental company in charge of planning and staff and the PPP Projects Unit of planning and establishing Cross Israel Highway Israel Cross establishing and planning of
’s Israel . a gover
area –
in in the northern metropolis
bases through the Transfer to the South Administration, which standard public procurement and by using the PPP Model usingthe PPP by procurement and public standard for Highway 6, Carmel Tunnels and the Fast Lane to Tel army
by several governmental authorities: bygovernmental several
a a light rail line cts Division at the Accountant General Accountant the at Division cts
Inbal. The division promotes PPP
, and
a governmental company in charge in company governmental a
–
Implementing Implementing Authority lan to support and develop the andthe developNegev to lan support the the Governmental Building Administration is a branch of the Assets, Procurement and Logistics t the Accountant General in the Ministry of Finance. It is in charge of governmental building,
– an
Promotion of PPPProjects in Israel the division is composed of the Accountant General Cross Israel Highway Israel Cross segments ('Highway 6') acts as companypromotesprojects through Division a projects. and other construction regional courts complexes, district and includingoffices (ministries), head NTA, Metropolitan Mass Transit System Ltd establishing mass transit systems in the metropolis of Tel Aviv. The company promotes projects through Model. PPP byprocurement using the standard public and projects of development of several manages the transfer of IDF units from the center of strategicp The Governmental Building Administration at the Accountant General Finance governmental company energy, environment, water and construction) through Inter General. of the representativeAccountant The Transfer to the South Administration in the Ministry of Defense The Infrastructure and Proje and Infrastructure The – 5) 4) 3) 2) 1) PPP projects in Israel are promoted are PPPIsrael projects in 2) PPP Projects in Israel 4
cost illions illions 0.4 1.0 5.0 1.8 b Constructio n ( NIS) of
Amitim; Amitim; othersHarel; Leumi; Migdal Discount; Harel Insurance Hapoalim; Psagot; Main Main Finance Providers Hapoalim; Clal; Menora;
the
Fund
Fund Shapir Shikun & Binui; Allied Noy Fund; IIF Danya Cebus; IIF Shareholders in Concessioner
Fast LaneFast Carmelton Derech Eretz Netivey Netivey Hayovel Concessioner
Operation Operation Q4/2010 Q3/2002 Q1/2009 Q1/2011 total cost of construction of these projects is Commencement
estimated estimated Q1/2006 Q4/1999 2006 Q3/2007 Financial Financial Closing /Construction Commencement
Operation Operation Operation Operation Status
The Projects Division The Projects Division The Projects Division The Projects Division PPP projects that have been promoted in Israel over the last two decades and that and decades two last the over Israel in promoted been have that projects PPP Governmental Authority
. the main the
providing free shuttle shuttle services stage stage or construction stage. The
billion
Israel Highway;
- 6 3 electronic electronic toll road; Tel Aviv, and a designated lane that prioritizes public transport, and HOVs. The remaining capacity is sold to private forvehicles a fee Two tunnels Haifa from east crossing to west, length total approximate of 6.5 km, 5 km of which are tunnels Cross Crosswise Crosswise highway from Anava Interchange Ayalon to approximate length of 22 km Highway, Park & Ride parking lot at Shapirim shuttle service to central Project DescriptionProject
NIS NIS
Existing PPPExisting Projects the of State in Israel Highway Highway 6, Central Segment The Carmel Tunnels Carmel The Fast Lane Tel Lane Fast Avivto Transportation 431 Route Project are in their operation approximately The table below presents presents below table The 3) PPP Projects in Israel 5
1.1
cost illions illions 1.0 2.3 b Constructio n ( NIS) of
;
Hapoalim Clal Insurance Leumi; institutions Main Main Finance Providers Migdal; Clal; Harel Insurance; Menora Mivtachim; Hapoalim; Deutsche Bank
the
; Veridis Shapir Pizzarotti IDE; Shapir; Noy Fund; Leumi; Pizzaroti Shareholders Shareholders in Concessioner
North
Shapir Pizzarotti Highway 16 LTD. VID Cross Concessioner
023 /2 Operation Operation 2 Q3/2005 Q1/2019 Q (predicted) Commencement
Water Q1/2003 Q1/2015 Q4/2019 Financial Financial Closing /Construction Commencement
Operation Operation Construction Status
The Projects Division The Projects Division The Projects Division Governmental Authority -
a year;
3
million m
includes an independent road to Jerusalem from the west, Road connecting no. 1 (Moza) and Menachem Boulevard; approximate length of 5 km, including Begin tunnels Reverse desalination production capacity facility, osmosis 118 of The northern Israel Highway: between Cross Yoqne'am and Somekh; length total approximate of 19 km An additional entrance Project DescriptionProject approximate length of 106 km, from Ein Interchange in the north Tut Sorekto Interchange
Facility
Desalination Ashkelon Ashkelon Road 16 Road Highway Highway Segments 7 3 + 6, Project PPP Projects in Israel 6
cost illions illions 1.4 2.2 0.9 1.6 1.6 b Constructio n ( NIS) of EIB
Leumi ;
FW; K EIB EIB; Hapoalim Main Main Finance Providers Hapoalim Hapoalim; EIB; Group Clal Hapoalim;
the
Capital
IDE Mekorot IIF Shikun & Binui; IDE Dan Shareholders Shareholders in Concessioner
ID 2 ADL S.M.SIDE Via Maris H SDL Concessioner
7 2023 /200 Operation Operation 2 (predicted) Q Q4/2009 Q3/2013 Q4/2015 Q2/ Commencement
Q1/2005 Q4/2007 Q2/2011 Q4/2011 Q2/2020 Financial Financial Closing /Construction Commencement
Operation Operation Operation Operation Construction Status
Division The Projects Division The Projects Division The Projects Division The Projects Division The Projects Governmental Authority
a for for
facility, a year;
3 a year a year
a year 3 3
the facilitythe
3 . Includes electricity electricity to
an an independent
million m a year
3 lanned construction plant which will supply facility. the to electricity the facility the Reverse desalination production capacity facility, osmosis of 100 million m Reverse desalination approximate production facility; osmosis capacity of 200 million m p an independent power 90 million m Reverse desalination production capacity osmosis of 127 million m Reverse desalination production capacity facility, osmosis of 150 includes power provides plant that Project DescriptionProject power plant that provides to electricity Reverse desalination production capacity facility, osmosis of
Facility
Desalination
A
Sorek B Desalination B Sorek Facility Ashdod Desalination Ashdod Facility Sorek Facility Palmahim Palmahim Desalination Hadera Desalination Facility Project PPP Projects in Israel 7
cost illions illions 0.2 1.2 3.4 2.5 b Constructio n ( NIS) of
Hapoalim; Clal Leumi Main Main Finance Providers Hapoalim; EIB; OPIC Hapoalim; EIB; Menora; othersHarel;
the
ClalSun; EDF Energy Assuta Ashdod Shikun & Binui; Noy Fund; TSK Noy Fund; BrightSource ; GE Shareholders Shareholders in Concessioner
Ashalim Sun Assuta Negev EnergyNegev Megalim Concessioner
Operation Operation Q2/2017 Q2/2019 Q2/2019 Q4/2017 Commencement
Energy Q2/2012 Q2/2015 Q2/2014 Q4/2013 Construction Financial Financial Closing /Construction Commencement
Operation Operation Operation Operation Status
The Projects Division The Projects Division The Projects Division The Projects Division Governmental Authority
plant using solar power solar power
- - voltaic voltaic
- additional 400 beds). A hospital, including all the required for a hospital, public departments approximately 300 beds (and an option with for 121 MW Thermo plant with reflection a generation solar capacity of 121 MW tower, Power photo technology, generation ofcapacity 30 MW Project DescriptionProject Thermo plant using trough parabolic generation capacity of technology, - -
thermo thermo
PV1
– – –
PLOT A PLOT B
– – Ashdod Ashdod Center Medical Ashalim Ashalim solar solar Ashalim solar Project Ashalim PPP Projects in Israel 8
cost illions illions 1.7 1.8 b Constructio n ( NIS) of
- - - Main Main Finance Providers
the - - Shareholders Shareholders in Concessioner
- - - Concessioner
- - Operation Operation Commencement
Closing - - - Financial Financial /Construction Commencement Operation Status Construction
The Governmental Building Administration The Governmental Building Administration Governmental Authority
Project DescriptionProject
Court Court complex in Tel Aviv; Court houses in Lod, Ashekelon, Petah Tikva and Herzliya; HaLeom parking lot, Energy center and Genery Jerusalem 2 in Government Government complex in Natanya; Court houses in Tiberias, complexes Safed in Jerusalem and Parking and Nazareth lot Hadera; Illit; 24 Jerusalem District and Ministry of Justice in Project PPP Projects in Israel 9
27 /2025 /20 3 2
Q Q Anticipated Anticipated Operation Commenceme nt
/
The estimated estimated The
23 Anticipated ClosingFinancial Construction Commencement /2021 /20 3 2 Q Q
. The included projects in
tender stage. tender - /2021 3 Q1/2019 (in practice) Q in Israel
Anticipated Anticipated Tender Publication
1
/202 /2016 1 3 Q Q (in practice)
ualification Q - stages or in the pre the in or stages Anticipated Pre Publication billion
55
tender - Pre Status Tender
The Projects Division The Projects Division Governmental Authority Cost - projects projects that are promoted through PPP Model to Road 57, for for 57, Road to
s the the main
Gurion Airport; the airport will will airport the Airport; Gurion
- paying vehicles, including two - tage prior to Financial Closing, in various tender tender various in Closing, Financial prior to tage public transport, Shuttles, HOVs and toll Park & thousands of Ride free spaces at Shefayim parking Interchange lots with and Interchange, Mevo with services Ayalon free International airport, complementary shuttle Ben to Low mostly serve to designed be airlines Fast Fast lanes alongside Road 2 and Road LeZion Rishon from 20, Project DescriptionProject
irport
A Gush Dan Gush in
Anticipated PPP Project lanes Contract awardedContract
International International Transportation Project
Fast the table are in the s the in are table the NIS is approximately projects ofthese ofconstruction cost total The The table below presents 4) 1 PPP Projects in Israel 10
25
7 6 /20 1
2027 Q4/2024 Q 202 202 Anticipated Anticipated Operation Commenceme nt
/
2 2 2 Anticipated ClosingFinancial Construction Commencement /202 /2022 /202 /202 1 4 1 1 Q1/2024 Q Q Q Q
1 1 /202 /2020 /202 /2019 /2019 4 3 1 2 2 (in practice) Q Q Q Q (in practice) Q
Anticipated Anticipated Tender Publication
8 8 20 20
/20 /201 /201 /2020 /20 1 3 3 2 1 Q (in practice) Q (in practice) Q (in practice) Q (in practice) Q (in practice) ualification Q - Anticipated Pre Publication
ender Tender T Tender Tender Tender Status
way
h The Projects Division NTA NTA Cross Israel Hig The Projects Division Governmental Authority
– 41
200 ion) ion) - – Tz (Holon
Nazareth
Aviv to and 16 Park
-
year , including 43
Haifa
km OF OF Tel
along its route; stations
9 2
20
cubic meters per villages the the line approximate approximate length of the line km, including and Ride parking lots Reverse osmosis desalination facility 100 of capacity productiona with million Treatment facility for contaminated Industrial Military the at groundwater Complex in Sharon the area of the metropolis and the margins of Rishon Le Tel to (Herzliya) parts northern its and Aviv; length approximate of the line 39 km, including61 stations of areas eastern the connects line The the metropolis of Tel Aviv length approximate Aviv; Tel and of center the of stations. The line connects and Project DescriptionProject The line connects the southern parts
– –
Light
the Sharon
–
Nazareth
–
area Energy Water Western FacilityDesalination Galilee Water Facility Treatment Haifa Rail Tel Tel Aviv Light Line Purple Rail Tel Tel Aviv Light Line Green Rail Project PPP Projects in Israel 11
6 4 4 4 /202 /2021 /202 /202 2 4 3 1
Q Q4/202 Q Q Q Anticipated Anticipated Operation Commenceme nt
/
3 1 1 2 3 Anticipated ClosingFinancial Construction Commencement /202 /202 /202 /202 /202 2 1 1 3 1 Q Q Q Q Q
21 20 21 /20 /20 /20 4 3 2 (in Q Q4/2014 (in practice) Q1/2017 practice) Q Q
Anticipated Anticipated Tender Publication
2 6 20 20 20
/201 /20 /20 /20 /201 1 1 4 4 3 Q (in practice) Q (in practice) Q Q Q (in practice) ualification Q
- Anticipated Pre Publication
tender tender - - Financial Closing Tender Pre Pre Financial Closing Status
The Projects Division The Projects Division The Projects Division The Projects Division The Projects Division Governmental Authority ; voltaic voltaic voltaic - - -
capacity of 40 of capacity
lectricity lectricity storage plants
MW
using photo and e power 100 , 300 MW
- atural gas production technology using anticipated photo approximate capacity of 250 Power plant production for electric technology; using anticipated power approximate ofcapacity photo N Project DescriptionProject Power plant production for electric anticipated technology; power MW Power plant for electric power Municipal Solid Waste treatment facility in the 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
power
) 2 (
fired -
PV2 PV
PV3
– – -
Contract awardedContract awardedContract Waste treatment Facility at the Shafdan area (3)
plants Environment Ashalim gas Natural Dimona Dimona Project Ashalim
2 3 PPP Projects in Israel 12
4 4 202 /202 / 3 3
Q Q Anticipated Anticipated Operation Commenceme nt
/
storage storage - form form in the
1 21 (which require require (which " report of the
202 Anticipated ClosingFinancial Construction Commencement /20 / 3 3 Q Q of of the re
20 20 20 /20 4 Q Q4/ , Reading, Hagit and Eshkol. and Hagit Reading, , 4 projects include power plants plants power include projects Anticipated Anticipated Tender Publication
. These These . s ualification Q - Furthermore, Furthermore, as part
. Anticipated Pre Publication
2019 2019 Infrastructure for Growth "
tender tender - - the Pre Pre Status
voltaic production, wind power and pumped and power wind production, voltaic -
photo Governmental Building Administration Governmental Building Administration Governmental Authority using Project Finance method Finance Project using
at at
been sold, and the sale of following four more power plants (which are (which plants power more four following of sale the and sold, been
have
projects are promoted by the private sector in the field of energy of field the in sector private the by promoted are projects
Electricity Authority) Electricity
Project DescriptionProject Government complex and court Afula Storage center of the Governmental Archive 'Alon Tavor' plant Tavor' 'Alon Israeli
Contract awardedContract
State Archive State Project Governmental and complexcourt
currently owned by the Israel Electric Corporation Ltd) is anticipated: Ramat Hovav Ramat is anticipated: Ltd) Corporation Electric Israel the by owned currently Israeli Israeli government, which is published on the governmental website market, electricity that use various technologies, such as cogeneration, cogeneration, as such technologies, various use that hydroelectricity. For more details about these projects see In addition, several infrastructure infrastructure several addition, In the from licenses 4