The Ministry of Finance today held a hearing for Tel Aviv light railway franchisee Metro Transport Solutions (MTS). Participants from the ministry included Deputy Accountant General Avi Dor and Deputy Budget Director Amit Lang, and Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) CEO Izzy Cohen and MTS CEO Yohanan Mor represented MTS.
Accountant General Shuki Oren asked MTS to clarify whether it could secure the financing for the project within the stipulated time. He said that the clarifications were essential before deciding about the future of the project and the franchise agreement in its present form. He added that the government was considering cancelling the agreement.
In a press release, the Ministry of Finance stated, "At the hearing, MTS representatives presented their position about the hearing process, and barely mentioned in a pertinent way the substantive issues that are preventing the financial closing. Nonetheless, the franchisee's representatives asked the state for an additional 60 days to finalize commercial issues, which would enable the financial closing, before the state decides about the future of the franchise agreement."
The Ministry of Finance said that it would make a decision about MTS's specific request and about the future of the franchise in general in a few days.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2009
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