Egged Barred From Half-Billion Shekel Tender Amid Monopoly Concerns

Israel's Public Transportation Authority has excluded major operator Egged from a significant tender for bus routes in the "Hasmonean" cluster, serving Modi'in and Modi'in Illit. The tender, valued at approximately half a billion shekels annually, was also closed to Egged for a complementary tender in the Ramla and Lod area. Egged's disqualification stems from its designation as a monopoly and a restriction imposed by the Competition Authority, limiting its operational scope to 35 million kilometers per year. Egged's appeal against the exclusion was also rejected.

The "Hasmonean" cluster alone requires approximately 26 million kilometers of service annually. Combined with Egged's existing operations in the Jerusalem area, participation in this tender would have exceeded the permitted limit. The Director of the Public Transportation Authority, Idan Moalem, denied Egged's request to raise the operational ceiling, reinforcing a policy aimed at preventing market concentration in public transportation.

This tender is part of a broader strategy to split the existing cluster into two separate entities, "Hasmonean" and "Ramlod," with a clause preventing a single company from winning both. The winning bidder will be required to increase operational inputs by 10% and acquire a new fleet of around 207 urban buses, including electric and articulated models. Additionally, state funds will be allocated for establishing electric charging infrastructure and upgrading passenger stations in the region. The current operator of the "Hasmonean" cluster is "Kavim," and the transition to the new operator is expected to occur gradually within 12 to 18 months of the award.