Seven consortia comprising prominent infrastructure companies have submitted their candidacies for the first stage of the tender for operating a congestion charge in Gush Dan (Greater Tel Aviv). In February this year, Accountant General Yali Rothenberg published the tender for planning, constructing, operating and maintaining the congestion charge project, which is meant to be launched in 2027.
The project involves constructing toll gates at the entrances to the metropolitan area, securing the charging system, maintenance of the infrastructure and systems, operation of a customer service center, all for 22 years. The tender will close this September. Seven consortia have entered the pre-screening stage in which they will be examined to see whether they meet the threshold conditions for filing financial bids. The tender is estimated to be worth hundreds of millions of shekels over the concession period.
The consortia are: Danya Cebus, Africa Israel, and Milgam; Shapir Engineering and Generation Capital; Electra; Taan Earthworks, Nayax, and Ice Tech; Oron Group, Afcon and Egis; Shikun & Binui and Egged; Dan and SkyToll a.s.
The congestion charge was part of the Economic Arrangements law introduced by the previous government in 2021. After Miri Regev was appointed minister of transport in 2023, she froze the tender that had been issued by her ministry, and since then she has been in continual, loud dispute with the Ministry of Finance over implementation of the charge.
In the past few months, however, a truce has emerged. According to infrastructure industry sources, Regev will receive impressive compensation for acceding to the congestion charge, in the form of the planning and budgeting of a railway line to Kiryat Shemona and other projects. Government sources say, however, that no agreement has been signed with Regev, because the railway line will become operational only in several years’ time, whereas the congestion charge will come into effect fairly shortly, and Regev seeks immediate achievements that will sugar the pill of implementation of the charge, when it is doubtful whether any such achievements exist.
The congestion charge is expected to yield NIS 1.3 billion annually to the state, to finance the Gush Dan Metro and other public transport initiatives. The Ministry of Finance has apparently proposed to Regev to finance the rail link to Kiryat Shemona from the congestion charge receipts.
Under the law, there will be three rings in Gush Dan, and the congestion charge will apply to traversing them between 6:30 am and 10:00 pm. When the direction of travel is towards the center, the payment for crossing into the middle and inner rings will be NIS 10 each, while the charge for crossing into the outer ring will be NIS 5. Between 3:00 pm and 7:00 pm, the charge for crossing into the inner and middle rings in either direction will be NIS 5, and for crossing into the outer ring it will be NIS 2.5.
Published by Globes, Israel business news – en.globes.co.il – on July 14, 2025.
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