Bank Leumi will lead the financing for the construction of the Jerusalem Light Rail’s Blue Line.
Last week, a memorandum of understanding was signed between the bank and the partners in the project.
Jtrain Ltd., the designated project company owned by Danya Cebus and the Dan Group, was selected as the winner of the tender by the Finance and Transportation ministries, the Jerusalem Municipality, and the Transportation Master Plan. The line will be built using the PPP (public-private partnership) method, and the company will finance, establish, operate, and maintain the project.
The Blue Line project in Jerusalem includes the construction of tracks for three light rail lines 31 km. long from the Gilo and Talpiot neighborhoods in the city’s south to the Ramot neighborhood in the north.
The line will include a 2.5 km. underground section from Jaffa Street in the city center to Sanhedria, with three underground stations out of 53 stations along the line. The line is expected to serve 250,000 passengers daily, with a frequency of 3-4 minutes during peak hours, with a fleet of 132 rail cars, comprising 66 trains.
Project estimated at NIS 9 billion
The total cost of the project is estimated at NIS 9 billion. During the construction period, a grant of NIS of 2.3b. is expected from the state. Funding will be provided throughout the project’s construction period, which is expected to last 55 months until the first phase of operation, and an additional 29 months until the activation of the second phase.
This funding will join a series of other significant projects recently funded by Leumi in the fields of transportation and national infrastructure. In the past year, Leumi announced the financing of the Gush Dan Light Rail’s Purple Line project for €1b.
In addition, in recent years, Leumi has led the financing of the IDF’s supply centers project, the construction of Sorek 2, Israel’s largest desalination plant, and more.
Liat Shuv, head of Bank Leumi’s Corporate Division, said “the construction of the Jerusalem Light Rail’s Blue Line is expected to be a mass transit transportation solution, which will be an essential and modern part of the city’s transportation fabric and will serve the city’s residents and those who pass through its gates. We are proud to lead the funding of this important national initiative and thank Jtrain Group for their vote of confidence. The decision to lead the financing for this flagship project is part of Bank Leumi’s consistent strategy to lead the financing of national infrastructure in Israel, with a special emphasis on ESG aspects.”
This article was written in cooperation with Bank Leumi.