Tel Aviv light rail Photo: Eyal Izhar

Chinese, Russian cos out of Haifa-Nazareth light rail project

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Six consortia have handed the pre-qualifying stage of the tender for the Haifa-Nazareth light rail task, which is being led by TransIsrael and which is due to be completed by 2027. 1 of the consortia initially consisted of Israeli corporation Dan, Chinese organizations CREC and Shenyang, Polish firm PESA, and Italian enterprise ATM. CREC has, however, dropped out of the consortium.

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Dan has not explained the rationale for the split, only indicating, “In a joint conclusion and just after quite a few months it was made a decision to work independently, and each corporation is doing the job in a different framework.” Infrastructure marketplace resources testify, nonetheless, that Israeli corporations are distancing on their own from Chinese providers in bidding for infrastructure jobs in Israel. The cause is that the ringing disqualification of Chinese businesses that competed with Egged and Shikun & Binui (TASE: SKBN) for the 2nd phase of the Environmentally friendly Line and the Purple Line in the Gush Dan mild rail job led to a reconsideration of the involvement of corporations from China.

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In reaction to the claim of the NTA – Metropolitan Mass Transit Method Ltd. tenders committee that the bid that it submitted was unrealistically minimal, the disqualified consortium argued in its attraction versus the final decision that the disqualification was motivated by illegitimate criteria, among them force by the US on Israel.

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Far too early to identify a pattern

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Whichever the true explanation for the disqualification, some Israeli businesses are cooling on their associations with Chinese associates, despite the fact that it is nevertheless way too early to know regardless of whether this is the start of a development.

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There has been a adjust in one more consortium bidding for the Haifa-Nazareth venture as nicely. Russian company transport engineering JSC Transmashholding has resolved to leave the consortium consisting of Israeli company Lesico and two Spanish organizations.

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The same Russian company bid in the tender for the Jerusalem Light-weight Rail Blue Line in a consortium with Dan, and dropped out of that tender way too.

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Meanwhile, the submission of bids for the Jerusalem tender has all over again been postponed. It was at first due to have received underway in the third quarter of 2020, but was delayed. In April, bidding was postponed to the end of June, and it has now been postponed to August 9.

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Dan clarifies the withdrawal of JSC Transmashholding from the Blue Line tender as becoming because of to the war in Ukraine. “Simply because of the ongoing battling in Ukraine, the Russian companies made a decision to leave the tender. Dan acceded to their ask for, and has found many companies that will substitute the Russian businesses that sought to withdraw,” the company claimed in a assertion. “Globes” has uncovered that a person of these corporations is Korean.

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At any charge, the changes right after the conclude of the pre-qualifying stage are becoming created possible by the willingness of the tenders committee to wait for the bids until a further assessment of the new gamers signing up for the tender is carried out.

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It is not uncommon for there to be alterations in consortia at this phase, but the improvements are liable to hold off execution of the task, and also to hurt competing consortia that have worked on submission of their bids in accordance with the timetable.

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TransIsrael said: “TransIsrael has not up to now gained any official notification of variations in the composition of the competing consortia or of a withdrawal.”

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The Ministry of Finance mentioned: “The submission of bids in the Blue Line tender was postponed for a quantity of weeks in the gentle of requests from many of the bidders.”

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Published by Globes, Israel small business news – en.globes.co.il – on Might 31, 2022.

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© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

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