Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) notified the Tel Aviv Stock Exchange (TASE) that it has been told by the government that the Tel Aviv light rail project is being reconsidered, and that there is an option that the MTS consortium may lose its franchise for the project.
"Globes" revealed several weeks ago that the government was considering various alternatives for the project which has been delayed due to funding problems.
Africa-Israel owns 20% of the MTS consortium.
The company also said that MTS was told the government will reach a decision by mid-December, after a hearing on the matter. MTS was asked to present all documentation showing that it will be able to find the financing to conduct the project.
"Globes" reported last Sunday that MTS has told the government that a hearing process is not acceptable based on the project's agreement, and that it wants to continue talks about funding the project from where they left off several months ago. MTS claims that the delay in funding is due to the economic crisis which raised the cost of financing the project.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2009
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