This is likely to be a huge opportunity for private players, including MNCs, to help modernise Israel’s infrastructure.
In a significant development, Israeli Prime Minister Benjamin Netanyahu has disclosed at the start of Israel’s weekly cabinet meeting, that he would soon unveil a multi-year infrastructure spending plan worth more than $28 billion
The planned projects would include private sector investments.
As per Bank of Governor Karnit Flug, the plan includes improving the country’s ailing public transport infrastructure, as one of the areas of investment.
“The level of infrastructure in Israel is insufficient, particularly in the area of public transportation, and mainly in the major cities, but also in the electricity delivery system and in communication infrastructure,” said Flug to ministers.
He went on to add, “The volume of annual investment is low by international comparison, and we are therefore not closing the gap in the level of infrastructure compared to other advanced economies, which weighs down productivity and the growth potential of the economy.”
To this end, the government is likely to set up a unit which will manage and monitore all public-private partnership (PPP), including tenders and contracts.
“It is important that an informed estimation of the costs be made, and that the budgetary sources be defined, in order to avoid stopping projects and sharp cutbacks in projects as has happened in the past at times of budgetary stress,” said Flug.
($1 = 3.5705 shekels)