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

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

The metro network, expected to open initially in 2037, will include three lines spanning about 150 kilometers with 109 underground stations, connecting 24 municipalities 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 with no human driver onboard. Similar autonomous 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 on Israel to exclude Chinese companies from the tender. This pressure follows earlier US influence that led to the exclusion of Chinese firms from previous light rail projects, causing delays and increased costs. Chinese company CRRC is considered a leading player in autonomous train technology alongside firms from South Korea, Germany, France, Spain, and Japan. American companies have minimal presence in this specialized field.

NTA officials have recently engaged with Chinese companies to explore their participation, but the government entity lacks authority to disqualify bidders on political grounds. Any political disputes over Chinese involvement would be handled by Israel's Ministry of Finance, responsible for foreign investment regulation. Industry experts warn that excluding Chinese firms could reduce competition, leading to higher bids and ultimately increased costs for Israeli taxpayers.

The project also raises questions about operational policies, such as running the metro on the Sabbath, which will be decided by the Israeli government. The move to autonomous trains could theoretically reduce religious concerns since no human intervention would be needed during operation.

Summary: Israel's NTA has launched a 30 billion shekel tender for the second phase of the Tel Aviv metro, focusing on autonomous trains and operations, while facing US pressure to exclude Chinese companies, potentially raising project costs and political challenges.