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The Congestion Cost Regulation, which was handed as a part of final yr’s Financial Preparations Regulation, will stay on the legislation books regardless of the opposition of lots of the ministers within the present authorities, led by Transport Minister Miri Regev, who promised to cancel it. Nevertheless, “Globes” has discovered that the Ministry of Transport has determined to freeze the challenge, by suspending the tender course of that was printed for the institution and operation of the challenge that was on account of come into drive in 2025, whereas extending the deadline for submitting proposals to an indefinite date.
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Tenders are typically delayed, typically on the request of bidders, and the bid time additionally tends to be prolonged infrequently – however setting a young with out a seen deadline calls into query its credibility with potential bidders and harms the attractiveness of the tender course of within the non-public market.
The legislation was handed by the earlier authorities, and it consists of the appliance of congestion expenses within the Tel Aviv Metropolitan space, with the worth being decided primarily based on three zones, with a most cost of NIS 25 for passing between all three zones throughout rush hours. The tender was printed final September, and the final submission date for it was set on the finish of this month. The coalition agreements stipulate that the legislation on congestion expenses will probably be repealed.
A attainable cause for the Ministry of Transport’s choice to not result in the repeal of the legislation, however somewhat freezing the reform, is the truth that the settlement signed on the time between the Ministry of Transport and the Ministry of Finance included a good portion of the general public transport budgets within the passage of the legislation on congestion expenses and its repeal would see general budgets reduce.
For instance, it was set that NIS 500 million could be added yearly to the price range for extra bus companies over 5 years.
Throughout discussions on the state price range, the Ministry of Finance strongly opposed the repeal of the legislation and the reform, and careworn that its repeal would result in the cancellation of the price range for further companies in addition to extra budgets conditioned on the appliance of the charge.
No response was acquired from the Ministry of Transport.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on March 15, 2023.
© Copyright of Globes Writer Itonut (1983) Ltd., 2023.
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