Electra (TASE: ELTR) has won the tender for the construction, operation and maintenance of the congestion charge system that will operate in the Tel Aviv metropolitan region. This is a large-scale transportation infrastructure project, in which expected revenues over the concession period are estimated at NIS 1.25 billion.
The project is designed to deter cars and encourage a shift to public transportation, thus reducing traffic congestion at the entrance to Tel Aviv and on main roads. in the metropolitan area. According to the congestion charge law, there will be three rings in the Tel Aviv metropolitan region: an inner, middle, and outer ring that surround the main employment centers. Electra will set up some 220 toll points at 140 billing sites along the main roads, alongside vehicle identification systems, control centers, communication systems, collection and customer service.
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According to the tender, Electra will be responsible for detailed planning, construction, implementation of technological systems, operation and maintenance for 20 years. The total proceeds from the project will include a construction grant of approximately NIS 400 million and additional revenues of about NIS 850 million during the operating period. The toll contractor is the US company TransCore LP, which carried out the congestion charge project in Manhattan, New York, which has been considered successful.
Implementation of the congestion charge in Israel is expected to generate NIS 1.3 billion for the state coffers annually, and is intended to finance public transport projects, including the Metro.
Worldwide, cities such as New York, London and Stockholm have already implemented congestion charge systems. Thus, in the New York metropolitan area, a 7.5% decrease in traffic has been recorded, and journey times at major crossings, such as the Holland and Lincoln tunnels, has fallen by more than 40% in the morning hours. On the Williamsburg Bridge, there has been a decrease of 35%, and on the Brooklyn Bridge – 21%.
However, despite the encouraging data from the world, it is still unclear when the project will go into operation in Israel. Last November, after delays, objections and postponements, the discussion on the congestion charge reached the Knesset Finance Committee and was met with opposition from Transport Minister Miri Regev and local council heads. On the other hand, Minister of Finance Bezalel Smotrich insisted that the congestion charge is a “national need.” But in the end the Finance Committee sided with the opponents to the plan.
Published by Globes, Israel business news – en.globes.co.il – on December 8, 2025.
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