Background
A mass transit system or a high-capacity passenger transport system (the MTS) is a system that includes an entire network of lines, main stations, and maintenance and operation sites, designed integratively with current and planned land uses and with other public transportation systems. The network's lines form a skeleton of routes for a high-capacity transit system. The underground railway system (Metro) is the foundation for an advanced mass transit system in metropolitan cities around the world that are similar in size to the Tel Aviv metropolitan area. Metro systems are characterized by electric propulsion and full separation from other means of transport, typically operating on underground alignments.
In 2016, the Strategic Plan for the Development of Public Transport in the Tel Aviv Metropolitan Area (the 2016 Strategic Plan) was devised, and the main conclusion that emerged was that in order to enable good mobility throughout the Tel Aviv metropolitan area, there is a need for at least three metro lines which will provide the level of service, accessibility, coverage, and capacity needed to achieve the strategic goals set by the Ministries of Transport and Finance.
In August 2016, the Israeli government adopted Resolution 1838, according to which, NTA – Metropolitan Mass Transit System Ltd., should be tasked with advancing the planning of those metro lines. In August 2021, the Israeli government adopted Resolution 200, "National Preparedness for the Development of a Metro Network in the Gush Dan Metropolitan Area," in which it determined, among other things, that immediate preparations must be made for the execution of the Metro Project, that the Metro Project is to be considered a national project, and that the Project's budget will be up to NIS 150 billion.
The Metro Project is the largest infrastructure project in the State of Israel and one of the largest infrastructural projects in the world. According to a publication by the Prime Minister's Office "Infrastructure for Growth 2025", which presents all infrastructure projects in Israel advanced by government ministries and auxiliary units, whose execution cost is over NIS 100 million, the investment in the Metro Project will be about one-third of the state's total investment in infrastructure in the coming years.
The Metro is planned to operate in 24 local authorities, where more than 3 million residents live. An infrastructure project of such broad scope and geographic distribution poses major challenges to the entire Israeli economy at multiple levels: complex planning and statutory approvals, civil engineering works on a massive scale and the associated logistical challenges, supply of equipment required for the works, recruitment of manpower in Israel and abroad, adjustment of the electricity sector, complex infrastructural coordination amongst multiple infrastructure owners, and provision of the necessary funding for the project.
Advancing the project requires coordination amongst governmental ministries, various governmental authorities and bodies, governmental companies, local authorities, water corporations, and private sector companies. As stated, in August 2021, the government adopted Resolution 200, which served as the basis for the Underground Railway (Metro) Law, 2021 (the Metro Law), first published in November 2021 and amended as part of Amendment 4 from August 2024. The law granted special powers to the parties in charge of the project and defined its financing methods, including special taxes and levies.
This audit report reflects the importance of the Metro Project as the largest infrastructure project advanced by the State of Israel, and it was conducted following the publication of initial tenders for the launching phase, including a pre-qualification (PQ) tender for bidders prior to the tender for the execution of infrastructure works for all lines (Infra 1).