Israel Launches Major Procurement Process for $49 Billion Tel Aviv Metro Project
2026-02-12 11:11
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Wedoany.com Report on Feb 12th, The major procurement process for the Tel Aviv Metro project in Israel has commenced. This long-planned large-scale underground railway system, with an estimated cost of about $49 billion, spans 150 kilometers across 24 municipalities and is transitioning from the planning phase to phased civil construction. The planned metro network consists of three heavy-rail lines—M1, M2, and M3—with 109 stations located in the Gush Dan metropolitan area, the economic heart of Israel. The initial operational target is set for 2037.

The Tel Aviv Metro project will primarily operate within twin-bore shield tunnels, with underground stations reaching depths of up to approximately 40 meters. The lines traverse loose sand and clay layers of Israel's coastal plain, presenting complex geological conditions and a shallow water table, which increases the difficulty of tunnel boring and settlement control. To address these challenges, the project plans to use around 20 shield tunneling machines and will require the implementation of strict monitoring and waterproofing measures.

The project's feasibility relies on administrative and legislative support. In 2021, a government resolution designated the metro as a national priority project. Subsequently, the parliament enacted the Underground Railway (Metro) Law, centralizing authority and introducing a value capture mechanism. As a publicly funded project, the metro reduces private capital risk, allowing main contractors to focus on project execution. Transportation Minister Miri Regev stated, "The start of the prequalification is a historic moment for the State of Israel," and called the metro "a huge challenge and a great opportunity for renewal and investment." NTA Chairman Yodfat Afik Arazi emphasized that the metro "will change the future of Israel" and requires multi-party cooperation.

The delivery work is divided into preliminary works and two infrastructure packages, with tenders planned for release in 2026 and 2027. The first phase includes 78 kilometers of lines and 59 stations, involving the advancement of multiple parallel tunnels. For global contractors, the Tel Aviv Metro project presents a long-term opportunity, where geotechnical precision and interface coordination will be key success factors.

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