Via Nova Challenges Tender Award for Highway 6 Extension Project
Translated & summarized from Calcalist by baba
Via Nova has petitioned to cancel the tender award for the northern extension of Highway 6 to Shapir Engineering, claiming their bid was unfairly evaluated. Via Nova offered NIS 2 billion in concession fees versus Shapir's NIS 1.3 billion, but received lower scores on revenue projections. The consortium argues this decision was based on flawed assessments and seeks an interim order to halt the contract with Shapir, potentially delaying the NIS 2 billion project slated to begin in 2027.
The story in 6 lines · by baba
- Via Nova petitioned to cancel Highway 6 tender award to Shapir, citing unfair evaluation.
- Via Nova offered NIS 2 billion in fees, Shapir offered NIS 1.3 billion.
- The consortium claims lower scores were based on flawed revenue and financial model assessments.
- Via Nova alleges Shapir had an informational advantage as an existing operator.
- The NIS 2 billion project involves constructing 22 km of new highway and interchanges.
- The petition could delay the project, with work scheduled to start in 2027.
Via Nova, a consortium that lost the bid to construct a new northern section of Highway 6, has filed a petition challenging the inter-ministerial tender committee's decision and the award of the project to Shapir Engineering. The consortium, comprising Menorah, Milgam, and international firm Egis, seeks to annul the tender results, be declared the winner, and obtain an interim order to prevent the contract from being finalized with Shapir until the petition is resolved.
The core of the dispute lies in a difference of hundreds of millions of shekels between the financial offers of the two groups. Via Nova claims it offered to pay the state NIS 2 billion in concession fees, compared to Shapir's NIS 1.3 billion, a difference of NIS 683.3 million in favor of the state. Despite this, the tender committee selected Shapir's bid, citing lower scores for Via Nova regarding revenue projections and financial model stability.
Via Nova argues that the committee's decision was based on unfairly low scores for its revenue forecasts and financial model stability. The petition states Via Nova projected NIS 20.9 billion in revenue, while the state estimated around NIS 12 billion. The committee allegedly reduced Via Nova's forecast to NIS 13.8 billion, still 15% above the state's estimate but significantly lower than Via Nova's submission. Via Nova contends its traffic forecasts were based on the Ministry of Transport's national transportation model, and the committee relied on an insufficiently presented consultant and model, denying Via Nova a fair chance to address criticisms.
The petition also raises claims of unequal treatment, suggesting Shapir, which already operates other sections of Highway 6, benefited from informational advantages. Via Nova had previously appealed to the tender committee in September, demanding a review and a delay in contracting with Shapir, warning of legal action if its demands were rejected.
The Highway 6 northern extension project involves constructing approximately 22 kilometers from the Sorek Interchange to Beit Ha'emek, including three new interchanges. Shapir was awarded the project in July for a 34-year concession covering financing, design, construction, operation, and maintenance. The project's scope is estimated at NIS 2 billion, with work slated to begin in 2027. The new petition could delay the project if the court grants the request for an interim order.