HSBC and Leumi to Provide $1.1 Billion in Financing for Tel Aviv Purple Light Rail
Israel has secured €1 billion ($1.1 billion) in financing from UK banking giant HSBC and Israel’s Bank Leumi to start building an overground light rail line in the greater Tel Aviv area.
HSBC and Bank Leumi will provide the consortium – made of Israel’s Shapir Group and Spain’s CAF (Spain) – that has won the tender for planning, designing and building the purple light rail line, with €1 billion in financing, according to a joint statement by the Finance Ministry and the Transportation Ministry.
With the final closure of the financing on Tuesday, July 4, the Shapir-CAF consortium will be able to start working on the construction of the light rail infrastructure and technological systems and order the tram cars, after winning the tender for the project about a year ago.
The planned Tel Aviv purple light rail line will run from the eastern part of the Tel Aviv metropolitan area to transport passengers from Yehud, Kiryat Ono, via Ramat Gan and Givatayim to the center of Tel Aviv, stopping at Bar Ilan University, Sheba Medical Center, and Shuk Hacarmel.
It will span 29 kilometers (18 miles) and stop at 46 stations at a frequency of four minutes carrying about 256,000 passengers a day.
The government hailed the closure of the financing as a “vote of confidence” in the Israeli economy. The financing provided by the banks is part of so-called ‘green financing’, in which a financial institution finances projects of an environmental nature, with the aim of taking vehicles off the road and encouraging public transportation, according to the joint statement. (TOI / VFI News)