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Contents

General Section

General Information

Infrastructure

Introduction

Railways

Roads

Ports

Telecom

Energy

Power

Oil & Gas

Banking

Banking

Travel

Travel

Policies

Finance Policy

Trade

Trade

Exim

Tax Structure

Tax System

Important Contacts

Important Contacts

   
 

 

 
   

 

 

Infrastructure (Roads)

Introduction | The Cross Israel Highway | Conclusion

Introduction

The Public Works Department (P.W.D.) was established in 1921 as a general division of public words within the framework of the British Mandate. Since that time and up to today, the P.W.D. has been responsible for the paving of the inter-urban roads, and in the past, construction of most of the buildings for Government institutions and State services.

The network includes: Roads stretching over more than 4,200 km with a paved area of over 30 million square meters. The road inventory and its facilities are valued at more than 45 billion dollars, not including land value.

Since 1992, funding for inter-urban road projects has increased substantially. The P.W.D's annual budget has exceeded $ 450 million over the last two years. Approximately 70% of the budget has been allocated to road development projects, about 20% towards road maintenance and the remainder towards planning and research, operational and service units and administration.

In 1995, the P.W.D prepared a five-year work program for road development up to the year 2000.

As well as adopting the objectives set out in the previous work program, the primary aim now is to ensure the development of an adequate and economical highway system to meet future needs and which will provide service levels of domestic highways similar to those in Western European countries.

Priorities have been defined taking into consideration an annual budget ceiling of about $330 million for road development projects. The work program has taken into account national projects planned for the same period, in particular in the development of residential areas.

The substantial increase in funding over the last few years has enables the P.W.D. to:

.  Undertake technological improvement, for example, in the recycling of material.
.  Improve the standards of the geometric design of highways.
.  Initiate projects which aim to improve the use of resources in the future, for example, a Pavement Management System and a Traffic Control System.
.  Develop and upgrade computerized systems, improving both the quantity and quality of information available in all divisions.
.  Implement data processing systems in the engineering, finance and administration divisions.

In Israel, road design and construction projects are undertaken by the private sector, The public sector is responsible for planning, organizing, directing and supervising the design and construction stages, A considerable part of on-site supervision is also carried out by private consultants.

Consultant firms are selected for the design work of road projects according to their expertise and sphere of specialization in relation to the scope and complexity of the project.

Selection of companies for the construction of projects is by a public tender. All contractors listed in the Contractors' Register according to classification as to their area of expertise and financial scope. may participate in tenders.

Whenever a complex project demands knowledge and expertise that is not available locally those contractors participating in the tender are required to engage foreign contractors with experience in accomplishing the same type of project.

For example. the P.W.D. issued two tenders for constructing tunnels and the local contractors were obliged to include and work jointly with foreign consultants with proven experience in tunnel works.

In general, only contractors listed in the Contractors' Register may participate in tenders published in Israel. However, local contractors are encouraged to associate with foreign contractors who have proven international experience, in joint ventures or by other means. Finally, in the area of peace, the international road construction potential extends to a number of possibilities mainly:

1.  Road connecting Egypt, Israel, Jordan and the Palestinian Authority
2.  Haifa-Jordan highway
3.  Amman-Jerusalem-Ashdod highway
4.  A future central corridor network linking Syria. Lebanon, Jordan, Israel,


The Cross Israel Highway


One of the main problems facing the country's road network is the high level of vehicle density on the roads. Although at present Israel's vehicle motorization is only half that of Western Europe's, vehicle density is among the highest in the world. Moreover, based on present annual traffic motorization growth rates - of between 6-7% per annum - within the Next ten years there will be some 2 million motor vehicles on the road compared to over 1.4 million today.

The idea of a main traffic artery to the east of Israel's central metropolitan area, stretching from north to south, was first conceived in the 1970s. Although the concept of such a highway was often raised few concrete steps were taken to examine the reality of such proposals.

Finally, however, in 1990, a comprehensive study was commissioned. The study indicated that the construction of a cross Israel highway was an essential component in dealing with, as well as easing, Israel's worsening traffic problems.

In 1992 the Government designated the construction of a cross Israel highway as a national priority and consequently established the Cross Israel Highway Company. The sole purpose of the company is to promote the implementation of the project in order to contribute to the overall solution to Israel's transportation problems.

The Highway will extend from the north of the country to the south, with interchanges all along its length, and will form the eastern backbone of the country's transportation network. It will reduce congestion as well as air pollution in central Israel, and will encourage the much needed dispersal of population and employment from the center of the country to its periphery.

The overall length of the Highway will be approximately 300 kilometers, from the Galilee region to the Beer Sheba vicinity, It has been planned with maximum consideration for the environment, natural surroundings. and historical sites. Its design includes the highest modern engineering standards and safety considerations. It is planned as an expressway. with designed speeds of 120 to 130 kilometers per hour, and two to four lanes in each direction.

The first phase is planned to be 90 kilometers in length, running parallel to the greater Tel Aviv Metropolitan Area, and will cut approximately 750 million US dollars. The cost of the entire Highway is estimated to be 2 billion US dollars.

The Knesset has passed legislation enabling Phase 1 of the Highway to be built as a toll road concession. Four consortia have prequalified and been invited to submit proposals to finance, design, construct, operate and maintain Phase 1 of the Highway through a public-private partnership. In construction and finance industries, these consortia include some of the most prominent international construction firms and operators of toll highways.

It is anticipated that a consortia will be awarded the concession during the first half of 1997, and that the selected concessionaire will complete the construction of Phase 1 four to five year later. In order to facilitate the implementation of the project the Government has allocated budgets for the construction of two major interchanges (Ben Shemen and Kessem) which are on the critical parts of the project completion. Work on the Ben Shemen interchange is already at an advanced stage.

The second phase of the Cross Israel Highway project includes an additional 48 kms to the north and south of Phase 1.

The economic benefits of this route are expected to include:

  • 1. Reduction of vehicle operating costs, travel time, as well as facilitating easier access to most parts of Israel,  along with decreasing the number traffic accidents;

  • 2. Increased opportunities to expand employment opportunities through the development of commercial centers, and industrial zones along the highway;

  • 3. Enhanced development of tourist facilities;

  • 4. Improved environmental quality due to the dispersal of air pollution in the coastal plane;

 

Conclusion


Israel is presently seeking to focus on the expansion of the country's physical infrastructure, in order to deal with the growing pressure on its transportation network. The factors that have led to the urgent need for investment in this field are:

  • the previous low prioritization of infrastructure investment;

  • the massive economic growth Israel has experienced in recent years;

  • and the potential for converting Israel into a major transportation hub within the Middle East in the wake of the peace process.

In this document some of the main projects Israel is seeking to implement in all areas of the transportation system have been outlined. Israel's ability to finance and construct these programs will largely determine the economy's ability to attain future economic growth, as well as its ability to take advantage of its strategic geographical location in the region and exploit this advantage for economic benefit. In this document some of the main projects Israel is seeking to implement in all areas of the transportation system have been outlined. Israel's ability to finance and construct these programs will largely determine the economy's ability to attain future economic growth, as well as its ability to take advantage of its strategic geographical location in the region and exploit this advantage for economic benefit.

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