The Congestion Cost Legislation, which was handed as a part of final yr’s Financial Preparations Legislation, will stay on the legislation books regardless of the opposition of most of the ministers within the present authorities, led by Transport Minister Miri Regev, who promised to cancel it. Nonetheless, “Globes” has realized that the Ministry of Transport has determined to freeze the venture, by suspending the tender course of that was printed for the institution and operation of the venture that was as a result of come into drive in 2025, whereas extending the deadline for submitting proposals to an indefinite date.

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Tenders are typically delayed, usually on the request of bidders, and the bid time additionally tends to be prolonged sometimes – however setting a young with no seen deadline calls into query its credibility with potential bidders and harms the attractiveness of the tender course of within the personal market.

The legislation was handed by the earlier authorities, and it consists of the appliance of congestion prices within the Tel Aviv Metropolitan space, with the value being decided based mostly on three zones, with a most cost of NIS 25 for passing between all three zones throughout rush hours. The tender was printed final September, and the final submission date for it was set on the finish of this month. The coalition agreements stipulate that the legislation on congestion prices will probably be repealed.

A attainable cause for the Ministry of Transport’s choice to not result in the repeal of the legislation, however moderately freezing the reform, is the truth that the settlement signed on the time between the Ministry of Transport and the Ministry of Finance included a good portion of the general public transport budgets within the passage of the legislation on congestion prices and its repeal would see total budgets in the reduction of.

For instance, it was set that NIS 500 million could be added yearly to the funds for added bus companies over 5 years.

Throughout discussions on the state funds, the Ministry of Finance strongly opposed the repeal of the legislation and the reform, and confused that its repeal would result in the cancellation of the funds for additional companies in addition to extra budgets conditioned on the appliance of the charge.

No response was acquired from the Ministry of Transport.

Printed by Globes, Israel enterprise information – en.globes.co.il – on March 15, 2023.

© Copyright of Globes Writer Itonut (1983) Ltd., 2023.