Electra Estimates: 9 Billion ILS in Revenues from the Greenline Tender

NTA announced yesterday that the Group comprised of Electra, Dan and Alstom will carry out the light rail's second phase of the Greenline Project • Electra estimates that throughout the franchise’s 25 year period - including the 5 years for setting up - the proceeds will be approximately 9 billion ILS

January 31, 2022 Globes Service

Inside the Light Rail Stations / Photography: Eyal Itzhar

Yesterday, NTA announced the franchisees that will execute the light rail’s second phase of the purple and green line in Gush Dan. The Tender Committee decided to award the tender to the bid submitted by the Group comprised of Alstom, Dan and Electra to carry out the second phase of the Greenline Project. Shafir Group and the Spanish company CAF were awarded with the Purple Line tender. The bids proffered by the companies Shikun & Binui, Eged and the Chinese companies CRCC and CRRC were bypassed.

This morning Electra notified  the Stock Exchange that subsequent to having the tender awarded to the bid made by the Group’s joint company, which Electra holds 40.5% of, they estimate generating no less than 9 Billion ILS in revenues throughout the franchise period. The estimated proceeds include establishing grants subject to meeting several set milestones.

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The tender is a Public Private Partnership (PPP) tender, which includes setting up, planning, maintaining, supplying and funding the light rail’s green line and purple line projects. The franchise period will be for 25 years, and it includes a setting up period of approximately 5 years, and a maintenance period of approximately 20 years.

The light rail’s green line is planned to go through the cities Tel Aviv and Rishon Lezion, and will connect Holon and Herzlia. The line will also make stops at the employment centers of western Herzlia and at Kiryat Atidim in Tel Aviv. In total, the line is intended to include 63 stops, 4 of which will be subterranean, and it will be extended over approximately 39 km.
Electra also included in their report that per the directives of the tender and the franchise agreement; the Group that is awarded with the tender must complete the project’s escrow process within 12 months as of the date of signing the franchise agreement.

Electra announced in the beginning of the month that they were awarded along with Denya Cebus a Mekorot's tender in the scope of 600 Million ILS, for upgrading and developing dozens of water well drilling across the country for a four year period. Additionally, Electra was awarded with an NTA tender that includes reconfiguring light sources to LED Technology, providing maintenance services to electrical and lighting systems and facilities and executing public works for a 5 year period. This tender is also in the scope of 600 Million ILS.

Itamar Deutscher, General Manager of Electra Group: “The light rail project perfectly matches the Group’s various capabilities, since it utilizes the various specializations of the Group's companies in public works, planning, setting up and maintenance of complicated projects. This is a significant national project, which bolsters our activity in the field of franchising, and reinforces the positioning of Electra Infrastructure and other subsidiaries of the Group as key participants in major endeavors of this type. The project increases our workload, which nears the 30 Billion ILS level, and in lieu of Israel's urgent needs for other substantial infrastructure projects, we anticipate the Group’s growth trend in franchising and infrastructure type projects to continue in the coming years.”