TEL AVIV LRT GREEN LINE

The project concerns the design, finance, construction and maintenance of the LRT Green Line (Tel Aviv Light Rail).

The aim is to support the development of vital infrastructure and thus to improve the quality of life in the city, by making the local public transport more efficient. The project also contributes to the goal of decreasing the use of private vehicles from 54 % of all trips to 30 % by the end of the decade. It will also address market failures related to road externalities in terms of congestion (efficient transport), air and noise pollution, road safety and greenhouse gas (GHG) emissions (safe and green transport). The EIB loan will pursue EU and EIB's key interests in supporting climate action agenda, by promoting modal shift from road to rail and thereby a reduction of GHG emissions. The project is consistent with the EU/Israel Action Plan and supports key objectives such as sustainable infrastructure, climate change mitigation and economic cooperation.

The project concerns the construction of the new Green Light Rail Transit (LRT) line in the city of Tel Aviv, of 39km length with 62 stops. It is a key-project included in Tel Aviv's master plan, which foresees an extensive mass transit network consisting ultimately of three LRT lines (90km) and three metro lines (150km) in order to increase the attractiveness of public transport in the city, which currently relies only on bus services.

By supporting the shift of traffic to a more sustainable transport mode, the project will reduce negative externalities of road traffic (noise and air pollution, greenhouse gas emissions, road accidents and congestion), improving travel times and costs. By providing safe and affordable transport also to more vulnerable groups, such as people with reduced mobility, lower income and women, further benefits are unlocked, for example more egalitarian access to jobs and study opportunities.

The Project is expected to contribute directly to several SDGs, most notably climate change mitigation (viz. SDG 13) and urban infrastructure improvement (viz. SDGs 9 & 11). The project shares the development priorities of the EU/Israel Action Plan, which seeks promotion of sustainable development policies and actions, including on climate change. The Green Line LRT is consistent with Israel's National Transport Strategy and directly supports the Tel Aviv Mass Transit Strategic Plan of 2016.

The EIB loan enables the European sponsors to close their funding plan by providing long-term debt alongside other local banks and financial institutions.

An Environmental impact Assessment (EIA) has been undertaken. The appraisal will assess to what extent the EIA, the Environmental and Social Management Plan (ESMP) and the environmental and social management system of the promoter and the contractor comply with the EIB's Standards. The appraisal will also assess the outcome of any public consultation on the project that took place. As most, if not all land required for the proposed LRT is located within the existing right of way or is government owned, resettlement risks appear to be limited. This however needs to be confirmed during the appraisal. Climate risks identified so far are temperature increases and flooding.

The project is procured under a public-private partnership (PPP) contract that includes a concession to build and maintain the line for 25 years. The tender was published in the Official Journal of the European Union in 2018 (018/S 177-400275) and awarded in 2022. The procurement process was largely in line with the EIB's Guide to Procurement. The borrower of the proposed EIB loan will be the PPP tender-awarded company.