July 1, 2022

Ztrdam

Good Business

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

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Six consortia have passed the pre-qualifying stage of the tender for the Haifa-Nazareth mild rail undertaking, which is remaining led by TransIsrael and which is due to be accomplished by 2027. Just one of the consortia originally consisted of Israeli corporation Dan, Chinese organizations CREC and Shenyang, Polish business PESA, and Italian corporation ATM. CREC has, nevertheless, dropped out of the consortium.

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Dan has not discussed the reason for the split, only indicating, “In a joint decision and right after several months it was resolved to do the job separately, and every single business is working in a unique framework.” Infrastructure industry sources testify, nonetheless, that Israeli companies are distancing by themselves from Chinese companies in bidding for infrastructure jobs in Israel. The rationale is that the ringing disqualification of Chinese businesses that competed with Egged and Shikun & Binui (TASE: SKBN) for the second phase of the Environmentally friendly Line and the Purple Line in the Gush Dan light-weight rail undertaking led to a reconsideration of the involvement of businesses from China.

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In response to the claim of the NTA – Metropolitan Mass Transit System Ltd. tenders committee that the bid that it submitted was unrealistically low, the disqualified consortium argued in its appeal from the conclusion that the disqualification was determined by illegitimate concerns, between them tension by the US on Israel.

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Much too early to discover a development

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Whichever the real motive for the disqualification, some Israeli providers are cooling on their associations with Chinese companions, whilst it is nonetheless way too early to know whether or not this is the start off of a pattern.

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There has been a modify in another consortium bidding for the Haifa-Nazareth job as perfectly. Russian corporation transport engineering JSC Transmashholding has resolved to leave the consortium consisting of Israeli firm Lesico and two Spanish businesses.

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The similar Russian company bid in the tender for the Jerusalem Gentle Rail Blue Line in a consortium with Dan, and dropped out of that tender too.

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

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Dan explains the withdrawal of JSC Transmashholding from the Blue Line tender as becoming owing to the war in Ukraine. “Because of the ongoing preventing in Ukraine, the Russian companies determined to leave the tender. Dan acceded to their ask for, and has discovered a number of businesses that will swap the Russian companies that sought to withdraw,” the organization explained in a statement. “Globes” has discovered that one of these firms is Korean.

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At any charge, the variations right after the conclude of the pre-qualifying phase are being manufactured achievable by the willingness of the tenders committee to hold out for the bids till a more evaluation of the new gamers becoming a member of 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 modifications are liable to hold off execution of the venture, and also to harm competing consortia that have worked on submission of their bids in accordance with the timetable.

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TransIsrael stated: “TransIsrael has not up to now obtained any official notification of modifications in the composition of the competing consortia or of a withdrawal.”

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The Ministry of Finance stated: “The submission of bids in the Blue Line tender was postponed for a selection of weeks in the light of requests from various of the bidders.”

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Revealed by Globes, Israel small business information – en.globes.co.il – on Could 31, 2022.

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

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