Sources inform "Globes" that agreement has been reached on the two main matters that remained in dispute between the state and the Tel Aviv light rail project franchisee: the long-term debt, and the consequences of cancellation of the agreement following a breach by the franchisee.
The resolution of the two matters that were described as deal breakers by the state opens the way to the financial closing for the project in its present format. The main question still unresolved is that of the possibility of the sale of water produced by the excavation of the underground stations. Representatives of the Water Authority have joined the discussion on this matter.
In addition, there are secondary matters still in dispute, to do with the number of milestones according to which the state will pay the franchisee the set-up grant.
The franchisee is the MTS consortium, comprising ASfrica Israel, Siemens, Egged, CCECC of China, and Soares Da Costa of Portugal. Finance is due to be provided by a consortium of foreign banks headed by KfW and BayernLB, both of Germany.
Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2010
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