Israel's Finance Ministry Resolves Dispute to Advance Haifa High-Speed Rail Project

The Israeli Ministry of Finance's infrastructure coordination committee has resolved disputes between Israel Railways and state-owned fuel companies, Eilat Ashkelon Pipeline Company (EAPC) and Energy Infrastructure (Tash'a), which were delaying the relocation of fuel pipelines for the coastal railway expansion project. The decision, announced today, requires the parties to sign implementation agreements within 30 days and prohibits them from conditioning the start of work on land rights registration or the resolution of financial and environmental disputes.

The project, known as T.A.L. 65a, aims to upgrade and expand the coastal railway line between Hof HaCarmel station and Shfayim, covering approximately 68 kilometers. It includes adding two tracks for high-speed trains capable of reaching 250 km/h, which is expected to halve travel time between Haifa and Tel Aviv to about 30 minutes and increase train frequency. The project's estimated cost is NIS 17 billion, with completion targeted for 2035.

The primary dispute involved relocating about 13.4 km of fuel pipelines for each company. EAPC demanded prior settlement of its rights in the alternative land strip, while Israel Railways argued that waiting for the proprietary process would delay the project. The committee ruled that work can commence before the easement registration is complete, ordering Israel Railways to submit expropriation documents within 60 days and finalize registration within a year.

Disputes with Tash'a concerning engineering management, supervision costs, and potentially contaminated soil surveys were also addressed. While not decided at this stage, the committee determined these issues will not impede agreement signing or the start of work. Tash'a must provide details on its planned use of 16% overheads and disputed management and supervision costs within 30 days.

The decision, led by Ministry of Finance Director, aims to remove obstacles between infrastructure bodies. However, it does not guarantee adherence to timelines, as Israel Railways and the fuel companies must now finalize agreements and proceed with the infrastructure relocation on the ground.