Israel Launches $8.5 Billion Metro Tender Amid US Pressure to Exclude Chinese Firms

Israel's government-owned company NTA has initiated the early selection phase for a massive 30 billion shekel (approximately $8.5 billion) tender related to the second stage of the Tel Aviv metropolitan area metro project. This phase focuses on procuring trains, operating the lines, and implementing advanced technologies to enable fully autonomous, driverless train operations. The tender follows the first phase, which covered excavation and construction work, and together both phases total nearly 100 billion shekels, marking an unprecedented investment in Israel's economy.

The metro network, expected to open initially in 2037, will feature three lines spanning about 150 kilometers with 109 underground stations, connecting 24 local authorities in the Tel Aviv metropolitan area. NTA aims for the trains to operate at the highest current automation level, allowing passengers to sit at the front of the train and view the tracks, with remote control from a central command center. Similar systems are already in use in countries like France and the United Arab Emirates.

However, the project faces a significant political challenge due to increasing pressure from the US government to exclude Chinese companies from participating in the infrastructure tenders. This pressure comes despite Chinese firms, particularly CRRC, being among the global leaders in autonomous train technology. NTA officials recently held preliminary talks with Chinese companies about involvement in the project but stated they lack the authority to disqualify bidders on political grounds. The final decision on excluding Chinese firms would rest with Israel's Ministry of Finance, which regulates foreign investments.

Industry experts warn that barring Chinese companies could reduce competition and drive up costs, ultimately increasing the financial burden on Israeli taxpayers. The tender process is being conducted almost simultaneously for both project phases to avoid past coordination issues that caused delays and cost overruns in earlier light rail projects in the region. The metro is projected to handle over 600 million passenger trips annually once operational.

Summary: Israel's NTA has launched a 30 billion shekel tender for the second phase of the Tel Aviv metro project, focusing on autonomous trains and operations. The US is pressuring Israel to exclude Chinese firms, which could raise costs and delay the project. The metro is expected to open in 2037, serving millions of passengers annually.