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Tender Documents Issued for Extension of Route 6 Northward (Sections 3 and 7 – Yokneam Somech)

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Sunday, April 22nd, 2012

Press Release

Tender Documents Issued for Extension of Route 6 Northward (Sections 3 and 7 – Yokneam Somech)

The Ministerial Tender Committee made public today the tender documents for extension of Route 6 northward: sections 3 and 7 (Yokneam Somech). This is a BOT tender for financing, constructing, operating, maintaining the toll highway and transferring it to the State after the 34-year construction and operation period. This is a similar method to that used for existing sections of Route 6.

 

The project consists of two sections:

Section 7: From Yokneam interchange to Tel Kashish interchange, 6 kms in length.

Section 3: From Tel Kashish interchange to Somech interchange, 14 kms in length.

This is one of the largest infrastructure projects currently under way, consisting of significant tunnels with overall length of 5 kms, as well as six interchanges to connect Route 6 to regional and local roads.

 

The tender was made public after approval of its principles by a Government decision in January, and after approval of the maximum toll charges and franchise period by the Knesset’s Economic Committee.

 

The six groups pre-screened earlier this year may bid on this tender – indicating the competition in recent years for projects involving the private sector, as well as the great success of similar past projects.

 

Bidders, in conjunction with the tender and prior to submitting their bids, may take part in a professional consultation with regard to preliminary design alternatives prepared on behalf of the State, which are part of the tender documents.

This tender will be awarded based on the financial bid, concerning the construction bonus, as well as on bid quality based on engineering, financial, safety, environmental and service considerations.

 

Toll charges set for this tender allow for charging lower rates for travel during off-peak hours and discounts for travelling two consecutive sections – in order to promote and help settlement of remote towns.

 

Anticipated schedule for the tender process is:

Bids received by January 15, 2013; award during first quarter of 2013; and financial closing within one year from award of the tender.

Project construction is estimated at 3.5 years.

 

Accountant General in the Ministry of Finance, Ms. Michal Abadi-Boiangiu, in her congratulations for this tender, noted that “extension of Route 6 to Northern Israel reflects the Government policies on development of national infrastructure as well as reinforcing the Galilee and outlying areas. This is yet another example of cooperation between public and private sectors on infrastructure projects may provide value to the public – similar to tenders concerning sea-water desalination, energy, construction and other areas.”

 

The Tender Committee includes members from the Ministry of Finance, Ministry of Transportation, Ministry of National Infrastructure and Road Safety, and the entity in charge of project implementation – Cross-Israel Highway Corporation Ltd. The combination of these Committee members reflects the great advantage of cooperation between all relevant Government ministries who have experience with transportation-related BOT tenders.