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The business treasure of infrastructure projects in Israel

22/07/2020

The Israeli government’s total investment in the infrastructure industry will reach more than NIS 200 billion by the end of 2020. The set budget for the next five years on infrastructure projects has been approved and doubled. This budget serves as a gate for international companies in a wide range of infrastructure fields to participate in state tenders and implement large-scale infrastructure projects in Israel.


 It is a great business opportunity for international companies to and implements large-scale infrastructure projects in Israel. For it is a known fact that every large-scale and significant infrastructure project involves hundreds and sometimes thousands of companies from different fields.

Auren Israel’s team of consultants supports and accompanying infrastructure companies in projects such as the excavation of transportation tunnels to Jerusalem and the improvement of the transportation infrastructure. We professionally accompany dozens of companies, ranging from small international companies to well-known global companies, with each company executing its area of expertise in the project.

Starting with transportation, renewable energy, telecommunication, electricity, sealing,  a variety of technologies, etc.

In some of the acquaintances, the international companies participating are the direct winners of the state tenders, and in some of these acquaintances, the sub-suppliers.

The experts’ team of Auren Israel has extensive experience in support and assist infrastructure projects in Israel.

Starting with the preparation for the tender, winning, and the ongoing support of the business activity, alongside with the achievement of the ultimate goal, which is: bringing the profit back home.

All of these services are provided by our professional team, under one umbrella, in one place.

Tenders types in Israel: PPP, PFI, BOT, and BOO

The majority of the key projects in Israel are usually offered to the public for participation in the PPP (Public-Private Partnership) method.

PPP (Public-Private Partnership):

The contract in these cases is signed between a government office and a private business entity, for a common purpose. The great advantage of this method is that the initial cost burden, which is very often high, is on the business entity so there is no need to finance it by imposing it financially on the public. The business entity will earn the money back from the project eventually.

The three common models used in Israel are:

PFI (Private Finance Initiative):

The franchisee who sets up and operates the project receives payments mainly from the state, according to pre-defined performance criteria.

BOT (Build, Operate, Transfer):

Build, operate, and transfer. In this method, at the end of the period, the property passes to the client, the public sector. The franchisee who runs the project receives payments mainly from the users of the service.

BOO (Build, Operate, Own):

Construction, operation, and ownership – at the end of the agreement period, the property remains owned by the private sector.

The verity and wide range scale of infrastructure projects in Israel include projects in these areas of expertise: Engineering, Transportation Infrastructure, Transportation Tunnels, Electricity, Energy, Environmental Health, Renewable Energy, Environmental Cleansing, Telecommunication, Satellite, Agriculture; Real-estate, Sustainable Infrastructure,  Green Building, and Tourism Infrastructure.

We are at your disposal.

Mr. Ofir Angel

Chairman of AUREN Israel

ofir.angel@auren.co.il

Business Generator, Technologies, Strategy, and International Taxation


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