Northern Israel Light Rail Project Secures $10 Billion Financing, Moves to Construction Phase

The major public transportation project in northern Israel, the Nofit Light Rail, has officially entered its execution phase following the financial closure of approximately 10 billion shekels. The consortium comprising Electra, Minrav, and Alstom signed the financing agreement led by a consortium headed by Bank Leumi. The bank financing includes 4.6 billion shekels for the construction period and about 5 billion shekels for the operational phase.

Scheduled to connect Haifa, Nof HaGalil, and Nazareth, the 41-kilometer light rail line is expected to serve around 100,000 passengers daily. It will link the three northern metropolitan clusters of Israel: Haifa, the Krayot, and Nof HaGalil-Nazareth. The Ministry of Transportation stated that about 30 trains will operate on the line with a maximum frequency of every four minutes and speeds up to 100 km/h on intercity sections.

The project faced financing challenges last year due to the war, threatening to delay its opening beyond 2030, instead of the original 2028 target. After a year of delay, the financial closure has now been completed, allowing the project to proceed. Electra and Minrav will lead civil engineering and infrastructure construction, Alstom will handle train system design, and a dedicated company formed by Electra Afikim, Minrav, and Alstom will manage operations.

Representatives of the consortium described the financial closure as a significant achievement demonstrating the partners' deep commitment. They expressed pride in leading the development of a smart, advanced transportation solution that will enhance connectivity in the north, support regional economic growth, and serve local communities for decades to come.