May 27 2015
The awarded project includes the construction of tunnels and several underground stations for a section of the Red Line of the planned Tel Aviv mass transit rail system for ~$750 million.
The Shikun & Binui Group (TASE:SKBN.TA) announced that it has been awarded, together with an international infrastructure group, a contract to build a large scale infrastructure project in the Tel Aviv metropolitan area, Israel. The awarded project includes the construction of tunnels and several underground stations for a section of the Red Line of the planned Tel Aviv mass transit rail system. The company estimates that the project will total approximately ~$750 million and that the work will continue for approximately six years.
This is a major segment of a strategic project for the State of Israel whose completion will improve the infrastructure and quality of life for all who live and work in its central region. The awarded project includes the digging of underground tunnels in the Tel Aviv metropolitan area and six underground train stations. A TBM (Tunnel Boring Machine) will be used for excavating the majority of this complex civil engineering project.
Shikun & Binui has extensive experience carrying out projects of this type. It has built hundreds of roads throughout the world, including Israel's Highway 6 and Carmel Tunnels, Nigeria's Shagamu-Ibadan Road, and other transportation projects.
Commenting on the news, Mr. Moshe Lahmani, Chairman of Shikun & Binui, said, "Shikun & Binui is excited to have the opportunity to build another mega-project in Israel, as we have so many times during the past 90 years. This project joins the other groundbreaking projects that Shikun & Binui has carried out, such as the Highway 6 Toll Road that crosses Israel in its entirety from north to south, the Carmel Tunnels in Haifa, and hundreds of other roads and infrastructure projects that we have built, both in Israel and throughout the world. As in the past, Shikun & Binui has formed for this project an international consortium, as part of its strategy to develop its global activities and to create partnerships with leading international players."
Ofer Kotler, CEO of Shikun & Binui, added, "Shikun & Binui has extensive experience executing complex engineering projects, as well as the financing and management capabilities needed to carry out mega-projects at an uncompromising level of quality - for the satisfaction of our clients and the benefit of the public. This project joins many other mega-projects that we have managed in Israel and abroad. Recently Shikun & Binui was awarded contracts to build toll roads in Texas and Colombia valued together at ~$1.5 billion. In fact, Shikun & Binui is now active in ~20 countries, and continues to expand its global activities, including holdings in the U.S. and other markets."