Gush Dan Congestion Charge System To Be Built By Electra

The congestion charge in Gush Dan is getting closer: Electra has been selected to build, operate, and maintain 220 toll gates. The company won a government tender to set up charging sites across three rings around the metropolitan area. The project will include advanced identification systems, a control center, and customer service operations, and is expected to take effect in 2027. According to Electra, total compensation will include a grant of about NIS 400 million for construction and an additional estimated NIS 850 million over the concession period.

By Doron Broitman, Nadlan Center

Electra Group, led by CEO Itamar Deutscher, won the tender issued by the inter-ministerial tender committee for the planning, construction, operation, and maintenance of the congestion charge project in the Gush Dan region, the company reported today to the stock exchange. The goal of the project, established under the law to reduce traffic congestion in Gush Dan, is to ease traffic loads in the metropolitan area.

As part of the project, the concessionaire (fully owned by the company) will be responsible for planning, building, operating, and maintaining approximately 220 toll gates, representing about 140 charging sites across three rings around Gush Dan (outer, middle, and inner rings). The work also includes a vehicle identification system, billing system, supporting systems, communication systems, customer service operations, a control center, and more. Construction is expected to begin shortly after signing the concession agreement.

According to the company, total compensation over the concession period includes an estimated NIS 400 million construction grant, as well as an additional estimated NIS 850 million over the concession term.

The congestion charge is planned to take effect in 2027. Under the plan, Gush Dan will be divided into three rings—inner, middle, and outer—each with a different payment zone. Between 6:30 and 10:00, drivers will pay NIS 10 for crossing the outer ring, an additional NIS 10 for the middle ring, and another NIS 10 for the inner ring. For travel in either direction between 15:00 and 19:00, the fees will be NIS 2.5 for the outer ring, NIS 5 for the middle ring, and NIS 5 more for the inner ring.

The maximum daily charge per vehicle will be NIS 37.5. According to the proposal, taxis will pay only 50% of the fee with no daily cap, while trucks will pay double with no cap. Vehicles with disability badges and motorcycles will be exempt.

Itamar Deutscher, CEO of Electra Group: “Winning the tender to build and operate the congestion charge system around Gush Dan aligns with our long-term strategy—planning, construction, and operation of major projects, while expanding and deepening Electra’s expertise in the transportation sector. The congestion charge project is innovative and unique in the Israeli market and requires complex capabilities for construction and operation, including the integration of advanced technological systems near the many bridges the project will encompass.

“This type of project once again highlights Electra’s proven expertise across construction, operation, and maintenance phases. It will strengthen our strong position in the transportation sector, which we view as one of our significant growth engines.”

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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