New Bus Tender for Modi'in Area Launched Without Egged
Translated & summarized from Globes by baba
The story in 5 lines · by baba
- A NIS 4 billion tender for bus services in Modi'in and surrounding areas is being issued.
- The tender excludes the Egged bus company due to monopoly regulations.
- The winning operator must upgrade services and expand the bus fleet.
- The region will be split into two operational clusters.
- The transition to a new operator will occur over 12 to 18 months.
The National Public Transport Authority, led by Idan Moalem, is set to release a tender for operating bus routes in the Hasmonean cluster, which includes Modi'in and Modi'in Illit. These routes are currently operated by the Kavim company. The tender effectively splits the existing cluster into two: the Hasmonean cluster, for which the tender is being published this week, and the Ramla-Lod cluster, which will cover Ramla, Lod, and Be'er Ya'akov.
The total operational cost for the new tender is estimated at NIS 402.5 million annually, amounting to approximately NIS 4 billion over the entire contract period. The winning company will be required to significantly upgrade the service, including a 10% increase in operational inputs. The bus fleet in the Hasmonean cluster will also expand by 10%, totaling around 207 new urban buses.
Notably, the Egged bus company will be excluded from participating in this tender. This exclusion is due to its exceeding the annual limit of 35 million kilometers set by the Competition Authority, which has declared Egged a monopoly. Furthermore, restrictions will be imposed on winning bids, preventing the same company from winning both the Hasmonean cluster and the Ramla-Lod-Be'er Ya'akov cluster.
The transition to the new operator will be gradual, occurring in two phases within 12 and 18 months of the tender award. This process marks a significant shift in public transportation management for the region.
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