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Ministry of National Infrastructures
Derekh Petah Tikva 48 The Ministry of National Infrastructures was established in July 1996. The Ministry is responsible for planning and developing national infrastructures, with the goal of preparing them for the missions facing the country in the coming years. The Ministry is responsible for the following areas:
Government activity in this area involves planning the energy system, regulating the petroleum and electricity industries, facilitating and promoting oil and gas exploration, promoting conservation and efficient use of energy, developing alternative energy sources, making provisions for the use of nuclear energy, and organizing the energy industry for emergency situations. The Ministry does its work through administrations, divisions, and units, as well as government/private and fully private corporations. Research and development (R&D) is a key ingredient necessary to maintain and upgrade the technologies which will impact Israel's infrastructure and energy sector. Without keeping up and advancing the relevant technologies, Israel's options will become inferior to the world's energy and infrastructure development alternatives. Some of Israel's most important resources are technical expertise, abundant solar energy, and some mineral resources. These resources will continue to drive Israel's energy R&D into solar energy related research. Economic considerations in the exploitation of solar energy will continue to stress R&D of high temperature processes and new material research using the unique solar tower facility at the Weizmann Institute, and laser driven energy transmission processes. Material research will continue to have significant impact on energy storage such as cool or hot storage, where material phase change has been used in the past. This type of energy storage is important for shaving peak power demand. Technological advances in superconductivity will allow the practical application of superconducting magnetic energy storage devices (SMES), whilst the production of short high temperature superconducting electrical wires in laboratories was performed successfully. Energy storage will also be affected by the impact of material research on battery reliability, storage capacity, discharge duration and the number of cycles (overall life-time). Battery research will also determine the rate at which electric vehicles will be accepted by the customers. Material research will lead to an efficient, high power density, non-polluting battery which would permit the introduction of a substantial number of electrical vehicles. Replacement of a part of (for example 30% by the year 2020) the current fleet of vehicles which jam Israel's road infrastructure, with electric vehicles and with electrically driven trains will have far reaching effects on the fuel sector (both gasoline and diesel), may lessen Israel's dependence on imported oil and will improve the balance of payment, will increase the demand for electricity and will contribute to a more evenly distributed demand curve, will generate new jobs and will result in a substantial improvement in the air quality. Biomass, biofuels and waste will constitute a small fraction of the fossil fuel mix. These technologies are largely developed abroad and their main impact will be on the preservation of environmental quality while at the same time generating small quantities of energy - primarily for local consumption. Israel will continue to preserve technical know-how in order to be able to incorporate nuclear energy in the future. The introduction of nuclear energy in Israel will resolve three important issues: diversification of energy sources, ensuring long term and reliable energy supply source (since a nuclear power plant has to be re-fuelled only once a year or even less frequently) and reducing the global warming effect which is believed to be caused by the combustion of fossil fuel. Renewable energy will be a part of Israel's energy portfolio. Renewable energy sources typically include hydropower, wave energy, bio mass, wind energy, geothermal, and passive and active solar energy. Except for solar energy, which is expected to contribute approximately 5% and a few hundred additional MWs of wind power, the contribution to Israel's overall energy balance from all other types of renewable energy sources well be negligible, with probably one exception - the Aeroelectric Tower, which is under development and has not yet been proven. This technology cools dry and hot air, generating a downward flow of wind which drives turbines located at the bottom of the chimney to generate electricity. The energy source in this concept is solar and natural-global air circulation. This ambitious and innovative technology will provide a way to exploit solar energy without using a collector. The introduction of Natural Gas as a main fuel source will facilitate the introduction of fuel cell technology into the Israeli energy system. Israel will promote fuel cell technology through R&D and international cooperative research. Fuel cells are efficient,quiet, emission-free, inherently modular, responsive to changing loads, and have been used in the past on a small scale in space and other commercial applications. The reform in the fuel sector and its exposure to free market forces will continue. The fuel sector has been until recently closely supervised by the Government and fuel prices were determined on the basis of cost plus, thus removing competitive forces. As a result of the reform, competition is just starting to develop in marketing fuel products and in supplying infrastructure services. The supply of refined oil products is being controlled at present by the Israel Oil Refineries company, which in turn necessitates Government intervention and fuel price control. The Government of Israel has not, for the past two years, been involved in signing fuel purchase contracts and this field is now open to suitable oil companies. The Government has also taken steps to introduce unleaded gasoline for environmental reasons. Exposing the fuel sector to competitive market forces will result in the following trends in the sector: Additional large multi-national oil companies will participate in the Israeli fuel sector; refined oil products will be imported into Israel from oil refineries in Egypt and in Jordan; refined and unrefined oil products will be imported into Israel from Saudi Arabia and the Persian Gulf via pipe lines, once the political climate is conducive. The fuel sector in the year 2020 will experience much less government intervention than is being exercised at present. Fuel prices will be more directly related to their actual cost and the fraction of the tax burden in the total cost of fuel will diminish. The Government role will concentrate on assuring: adequate fuel reserves for emergencies, diversifying the types of fuel, helping secure an uninterrupted supply of fuel under all circumstances, outlining and supervising safety criteria for the fuel sector, determining fuel quality criteria and enforcing these criteria, ensuring a supply of fuel compatible to environmental laws (e.g. low sulfur oil, etc.), ensuring that anti-trust laws are not violated and that competition exists between the oil companies, infrastructure companies and oil refineries companies - this issue is particularly acute in the Israeli economy where a few corporations possess economic interests in various sectors, planning and allocating adequate infrastructure in order to allow for the import, transport, and distribution of fuel to the customers. The Government will not interfere in the determination of the cost of fuel to the consumer other than the imposition of the necessary (and minimal) taxes. The Head of the Fuel Authority is responsible to the Minister for implementing the above policy.
Fuel Authority This project is aimed at introducing Natural Gas (methane) as part of Israel's energy basket. The target date for the start-up of gas flow is the year 2000. The project will be implemented by the Ministry of National Infrastructures, for which purpose it has set up the Natural Gas Project Management (NGPM). The project will be carried out by the private sector. The Government will be involved in planning and organisation, approval of suppliers, setting up the legal framework, providing the "right of way" and issuing tenders. The transportation company will operate on an "open access" basis.
Natural Gas Project
The Department's mission is the continuous improvement of energy intensity without affecting the level of energy services, taking into consideration energy supply costs and ecology. Basic Concepts: Energy conservation means reduction of expenses for energy consumption of the end-users by cost-effective activities, which do not affect the energy services and contribute to environment. Energy conservation includes:
Legislation Solar Legislation Since 1980 a Government Regulation requires a solar water heating installation in every new building in Israel, including residential and commercial sectors. This accounts for 80% of all our water heating requirements annually and provides a saving to the energy market of 3% of primary energy. A great deal of experience has been gained in this field. Solar energy contribution to energy conservation in Israel 21% of the electricity for domestic sectorEnergy Conservation Officers Education According to the Bills of Legislation relating to Energy Conservation, Israel has a statutory obligation for all companies and institutions to appoint an Energy Conservation Officer, whose task is to carry out energy conservation activities in his plant/institution. The Officers should complete specified training consisting of 200 hours of formal instruction. This training is provided by authorized universities and technological colleges. The Ministry may consider organizing such training in English for foreign specialists. Energy Conservation Legislation in Israel - Existing Legislation
This section consists of the following activities: 1. Education Almost every year a National Energy Conservation Contest is conducted, called the "Energy Conservation Olympics" in senior high schools. The adoption of this concept in other countries is strongly recommended, including national and international Olympics on Energy Conservation. Education scheme on Energy Conservation was prepared for grades 5-7 as part of the learning programs as specified by the Ministry of Education in all schools. An drawing competition for the junior grades is conducted and the pictures are displayed at the Jerusalem Science Museum with prizes awarded to the best ones. Articles in children's magazines are published in addition to activities on educational TV. 2. Instruction for Professionals Advisory services for plants, factories and institutions is provided, as well as workshops for Energy Conservation Officers, together with professional literature and books on subjects such as air conditioning, steam boilers, water pumping, etc. Reports on energy conservation demonstration projects are made available to all potential users. 3. Public information campaigns The Ministry operates advisory office and a toll-free telephone number for advice to the public on energy conservation. A multimedia station provides advice in Hebrew on energy conservation topics. An English version will be developed in the future. Leaflets are available to the public on all major home appliances. Demonstration The demonstration aspect of the Ministry’s activities is based on the desire to constantly encourage the public to apply new conservation measures. This activity can be divided into two categories: planned demonstration scheme energy consumers proposals Existing energy conservation demonstration projects:
1. Solar energy for domestic use Current Projects
1. Municipal waste treatment for energy supply Plans for the Future The Ministry studies new concepts from all over the world and assess their suitability for the Israeli market and plan their introduction. Among such items to be found in this category are: Information and education
1. An Energy Conservation Demonstration Center, which should be an
international project with all the implications involved. Demonstration
1. Stand-by losses Proposed Legislation
Energy Resources Law
(to include governmental agencies) Energy Conservation in Lighting of Public Institutions Energy Conservation in Buildings Envelope
of Institutions Statutory Energy Conservation Calculations
for Buildings Solar Rights Energy Conservation Surveys Recommendations -
Implementation Energy Efficiency Improvement of Steam
and Hot Water Boilers Energy Efficiency Improvement of Air Conditioners,
Refrigerators and other Appliances Water Pumps Efficiency Tests and Improvement Supervision of Air Compressors in Filling Stations
(for proper tire pressure) Fuel Filling Overflow Prevention in Filling Stations
The Electricity Commissioner is responsible to the Minister to supervise, approve and plan for the current and future needs of the State and its citizens so that demand will always be met. He is also responsible for implementing the Minister's policies in the field of electric power. The Israel Electric Corporation (IEC) incorporated in 1923 is a Public Utility, generating and supplying electricity throughout the State of Israel. The IEC directly serves a population of about 5.5 million in an area of approximately 21,500 sq.km. For the time being, the IEC also provides electricity to Judea, Samaria and the Gaza Strip with a total population of ca 1.7 million. The electric system is isolated from neighbouring systems and had a peak load of 6,000 MW in January 1996 with a total installed capacity of 7700 MW as of today. Coal fired units comprise about 50% of the system's installed capacity, while the share of oil fired units and gas turbines (using diesel oil) is 29% and 21% respectively. The main transmission voltage is 161 kV, while the first stage of a 400 kV transmission voltage grid has been operational since 1990 and is planned to be superimposed on the 161 kV network as the main transmission grid. The Israeli system has expanded over the last ten years at the rate of 8.8% per annum - resulting in the extensive projects and equipment purchases - exceeding those of much larger systems. The IEC is entering a new era under licence which has replaced the monopoly and is open to tenders and limited IPP production, with a newly formed Public Utility Commission. IEC is now introducing Independent Business Centres which will make supervision easier and more efficient as well as heighten competitiveness.
Electricity Commissioner
Israel Electric Corporation As the only company in Israel refining oil and supplying petroleum products, ORL plays a central role in planning and developing energy use in Israel. The company owns and operates two refineries in Israel. The Haifa Refinery has a capacity of 180,000 bspd of crude oil. This plant produces most of the feedstock for the Haifa Bay Petrochemical Industry. In addition, the Haifa Refinery operates a power plant wich generates the steam required for the plant facilities and for neighbouring industrial plants. The Haifa Refinery also supplies all of its own electricity requirements. The Ashdod Refinery has a refining capacity of 90,000 bspd. A new 5 year development program, to begin in early 1997, includes the following:
The company is expecting deregulation and liberalization of the energy market in Israel followed by privatization of the company. For ORL, part of the privatization procedure is a joint venture with a strategic investor (a major oil company) for further involvement and development of refining, petrochemicals and downstream activities. An important part of the energy sector is the infrastructure needed to secure adequate, safe, clean and uninterrupted energy distribution to the residents of the State of Israel. ORL devotes much thought and planning to an examination of new directions and strategic planning for the era of peace in the Middle East, in the light of expected developments in the global and European refining markets. The recession in the refining industry, the increasingly stringent environmental demands, and the implications of open borders and increased competition, pose a difficult and complex challenge for ORL.
Key Data in 1995
Subsidiaries
Oil Refineries Ltd.
Petroleum & Energy Infrastructures Ltd. (Petroleum Services Ltd. until 1994) was established by the Israeli Government in 1959 and took over the concession and properties of the Iraqi Petroleum Company (IPC) . The company has enlarged the facilities which were built by IPC and constructed new facilities throughout the country. Petroleum & Energy Infrastructures Ltd. plays a central role in the Israeli energy sector and is the dominant infrastructure company in the sector. Currently, the company owns more than 10 terminals for storing and pumping crude oil and refined oil products. Over 700 kilometers of pipelines were laid by the company's subsidiary, Oil Products Pipeline (OPP), to link the company terminals and major consumers such as the Israel Electricity Corporation power stations, airports and the refineries. Within the current infrastructure, the company owns and operates an oil dock; loading and discharging marine facilities; tank farms and an extensive pipelines network. The company owns 50% of Pi - Gliloth Petroleum Terminals & Pipelines Ltd. The company is preparing itself to provide the services needed for the rapid growth in distillate consumption in Israel and for the planned growth in refining capacity. It is also preparing for the challenges being offered by the geopolitical changes taking place in the region. Israel is in an ideal location to serve as a transit country for the Middle East, and the company is well positioned to take advantage of the new marketing and transport opportunities opening up in the oil sector.The company is to play a central role in future N.G. and/or L.N.G. (natural gas and/or liquefied natural gas) projects (import and/or transport from neighbouring countries). The company's role will be in building and operating the infrastructure of the gas project(s) in Israel. This infrastructure includes pipelines and storage facilities. Petroleum & Energy Infrastructures Ltd's concern for the environment is evident in its ecological and safety investment. The company continues to implement computerized control and on-line monitoring of its facilities to ensure the safe storage and transport of its products, all of which meet international petroleum standards. The company's expertise in both underground storage and pipeline and petroleum infrastructure enables it to offer engineering services. In 1995 a vast project was completed for underground storage of refined products in the south of Israel at the cost of approximatly $50 million. The company has also been involved in energy research projects and in the search for rare and precious metals.
Petroleum and Energy Infrastructures Ltd. The Israel National Oil Company Ltd. is a state owned company founded in 1958. In recent, eyars, most of its financing comes from Israeli public investors and from Israeli and foreign groups participating in INOC's oil endeavors. The most important mechanism for fund mobilization (through the Israel Stock Exchange) is the INOC-Dead Sea Partnership (IDLP). The Israel National Oil Company follows an aggressive exploration program. The company is presently operating in two lease areas, with two licenses and additional possibilities likely in at least one other region. All efforts are based on proper identification of a well defined petroleum system and a viable geological conceptual model. In future years, INOC envisages the drilling of at least nine wells in these areas. INOC intends to fully utilize all available geological and geophysical technologies in order to define and prioritize these drilling opportunities, so that only the most favorable prospects will be tested. INOC's principal oil exploration activities in recent years have been focused on the Dead Sea region. Activities are conducted as a joint venture between a group of companies, in which INOC is the operator. Since 1990, IDLP has been the main partner in the oil ventures undertaken by INOC in the Dead Sea area. INOC operates the Ashdod lease in partnership with other entities, and conducts exploration and production activities. At this stage, INOC has undertaken an extensive work program for the holding which is primarily focused on seismic surveys of the region.
Israel National Oil Company
Founded in 1980 by the Government of Israel, the National Coal Supply Corporation (NCSC) is the sole importer and supplier of coal to the Israel Electric Corporation (IEC); its shares are held by the Government (74%) and IEC (26%). In recent years, NCSC sales have steadily increased. Sales turnover in 1995 totalled $355 million, a 24% leap from the previous year. This figure is expected to reach $420 million in 1996, signifying a further 18% increase. Coal is presently unloaded in Israel at two locations: Hadera - A dedicated coal unloading sea jetty that juts 2.5 kilometers into the sea, provides an unlimited draught facility, enabling the supply of 6 million tons of coal in massive bulk carriers of up to 190,000 tons, to the "Orot Rabin" 2,550 MW site. Ashdod - Coal is unloaded in a protected port and transferred to NCSC's dedicated coal terminal which handles 2.5 million tons, before being conveyed by rail to the 1,150 MW Ruthenberg power station in Ashkelon. Two additional 575 MW units will be completed by the year 2001. By the year 2001, a dedicated sea jetty, similar to that at Hadera, will be erected adjacent to the Ashkelon power station. This will alow large Cape size vessels to unload directly at Ashkelon, avoiding the need to use the port of Ashdod infrastructure and the Ashdod-Ashkelon rail line. NCSC is preparing to purchase 7.5 million metric tons of coal this year, and expects this figure to reach 8.5 million metric tons in 197. The company predicts this quantity to exceed 11 million metric tons between the years 2000-2001. As a result of this extraordinary growth in coal imports by the year 2000, the NCSC will become the largest single purchaser of steam coal in the European market.
National Coal Supply Corporation
Israel possesses ample reserves of oil shale. In the last fifteen years, Israel has been involved in an intensive effort to exploit this resource. This effort, which was carried out by the Government-owned company PAMA, concentrated on two technologies - direct combustion for electricity generation and retorting for liquid fuel extraction. Of these two, direct combustion proved competitive with conventional electricity generation technologies. PAMA's facilities include a combustion pilot facility and a demonstration power plant. The proposed IPP oil shale power station project of around 100MW involves utilization of oil shale for steam and electric power production using the technology developed at PAMA.
PAMA 1. Water and Sewage The Water Act states that all the water resources of the state are public property, controlled by the Water Commissioner for the state. 60% of the water supplied in the country is through Mekorot and the remainder through privately owned facilities. The National Sewage Administration is resopnsible to the Minister to ensure that effluent is correctly treated and that water sources and the seas are not polluted. The fluctuations in the climate of our region and the scarcity of rainfall are very well known phenomena. Droughts and dry cycles are not infrequent, while the volume of our reservoirs is too small to store sufficient quantities of water to function as a supply regulator bridging dry years and dry cycles. There is a crucial need to protect our aquifers from destruction, either by contamination or by poor management. Our aquifers, which are small in volume, are already endangered by contamination, both chemical (salinity) and biological (human and industrial waste). The reservoir which is already suffering a continuous reduction in quality is the seashore aquifer. This aquifer is endangered both by the long interface with the Mediterranean and because of the dense and intensive urban activity upon its surface. Water can most efficiently be stored in the underground aquifers or in Lake Kinneret, which has a constant rate of evaporation, regardless of the quantities of water it absorbs, because the dimensions of its surface remain reasonably constant. It is definite that sometime in the beginning of the coming century we shall face the crisis of lack of fresh water to meet the urban demand. There is no doubt that allocation for agriculture will have to be almost entirely eliminated. Agriculture will have to adapt itself completely to treated effluent. The first activities are effluent reclamation and reuse for agriculture and industry, and water-saving or water-use efficiency, stressing the urgent need for effluent reclamation and reuse. Current resources will not be protected from contamination if sewage continues to seep into the aquifer. Proper treatment of effluent can provide 60% of suitable water for non-restricted irrigation. There is more than one proposed solution for the expected water crisis, from a pipeline or sea tankers from Turkey, to icebergs tugged from the poles and/or desalination stations aong the shores of the Mediterranean. An additional option is based on the exploitation of the hydrostatic pressure obtained from the difference between seal level and the surface level of the Syrian-African rift along the Jordan Valley.
The area of Lake Kinneret is 170 sq.kms., but it collects water from a basin of 2,730 sq.kms. in area, most within the boundaries of the State of Israel. The Lake Kinneret Authority is a regional and state body established to manage this watershed. Lake Kinneret is a reflection of all that happens in the area of the collection basin, and any long-lasting change in the quality of the water in the basic appears in concentrated form in the waters and on the bottom of the lake. Lake Kinneret has a great variety of uses:
Treating the water in the lake and streams was found to be unviable, as "end of the pollution process" treatment would have accumulative and unforseeable effects. The preferred agreed-upon solution is to reduce and avoid pollution before the water reaches the lake - namely, treatment in the collection basin, coordinating activities in the spheres of urbanization, industry, agriculture and tourism so as to reduce pollution in a controlled and organized manner. Various bodies are involved in this effort, including government ministries, municipal authorities, the Jewish National Fund, the Nature Reserves Authority and other public bodies.
Lake Kinneret Authority
The Earth Science Research Administration has the following national goals:
The Earth Science Research Administration
There are about 200 quarries operating today in Israel. Production is estimated to be around 50 million tons of rock minerals, including different kinds of aggregate, gravel, building stones, sand, marble, and other raw materials used mainly in construction. Phosphate mines are found in the southern part of the country, and the minerals extracted are used mainly in the chemical industry as well as in agriculture. All mines and quarries are under the control and possession of the government, which issues permits to the private sector to exploit these mines/quarries to further the development of the industry. The Mines and Quarries Authority's new functions will consist of the following:
The Fund for the Rehabilitation of Quarries: This fund was set up in order to assure the rehabilitation of deserted quarries and to restore the land to its previous disposition. Fees are imposed on anyone who exploits the land for commercial purposes, calculated as a percentage of the wholesale price of the material extracted (average 0.25%).
Mines and Quarries Authority
Mekorot - The Israel National Water Company is in charge of the wholesale supply of water to urban communities, industries and irrigation users. It produces and supplies about two-thirds of the total amount of water used in Israel. The company has developed Isarel's water supply systems on a nationwide scale since 1937. Mekorot supplied some 1,350 million cubic meters of water in 1995, of which 60% were supplied for irrigation and 40% for domestic and industrial uses. Fifty million cm were used to replenish overpumped aquifers. Its crowning achievement, the National Water Carrier, operating since 1964, in 1995 carried some 370 million cm from Lake Kinneret as far as the northern Negev. Following the peace accord with Jordan, Mekorot is preparing to fulfill all government commitments to supply the Hashemite Kingdom with the agreed additional quantities of water. Mekorot is also engaged in all activities resulting from the agreements with the Palestinian Authority. Mekorot is planning its activities in accordance with foreseeable demand. It is estimated that the future demand for water in Israel will be 2,150 million cm in the year 2000 and 2,400 million cmin the year 2020, as compared to the annual supply of less than 2,000 million cm today. Following are some of the major planned activities:
Since Mekorot now consumes 8% of the power supplied by the I.E.C. (representing some 26% of the company's operating costs), priority will be given to energy conservation methods.
Mekorot - Israel National Water Company
The Public Works Department (P.W.D.) was established in 1921 as a general division of public works under the British Mandate. Since then, the P.W.D. has been responsible for paving of inter-urban roads, and, in the past, for construction of most of the buildings for government institutions and state services. The network of roads today includes roads stretching over more than 4,200 km with a paved area of over 30 million sq.m. Since 1992, funding for inter-urban road projects has increased substantially. The P.W.D.'s annual budget has exceeded $450 million over the last two years. Approximately 70% of the budget has been allocated to road development projects, about 20% to road maintenance, and the remainder to planning and research, operational and service units and administration. In 1995, the P.W.D. prepared a five-year work program for road development through the year 2000. The primary aim is to ensure the development of an adequate and economical highway system to meet future needs, which will provide service levels similar to those in West European countries. Priorities have been defined, taking into consideration an annual budget ceiling of about $330 million for road development projects. The work program has taken into account national projects planned for the same period, in particular the development of residential areas. The substantial increase in funding over the last few years has enabled the P.W.D. to:
Road design and construction projects in Israel are undertaken by the private sector. The public sector is responsible for planning, organizing, directing and supervising the design and construction stages. A considerable part of on-site supervision is also carried out by private consultants. Consultant firms are selected for the design of road projects according to their expertise and sphere of specialization in relation to the scope and complexity fo the project. Selection of companies for project construction is by public tender. While only contractors listed in the Contractors' Register may participate in tenders published in Israel, local contractors are encouraged to associate with foreign contractors with proven international experience, in joint ventures or by other means.
Public Works Department As in most countries, the investments required for the development of the railway network cannot be fully covered by expected income from freight and passenger traffic, and therefore participation by the Government is essential. The Israeli Government considers, together with potential investors, conditions for participation in each of the projects. Eight projects are current being proposed:
Israel Railways In 1992, the Government of Israel designated the Cross-Israel Highway as a national priority, and established the Cross-Israel Highway, Ltd., with a mandate to plan and build the highway. The highway will extend from the north of the country to the south, with interchanges all along its length, and will form the eastern backbone of the country's transportation network. It will reduce congestion as well as air pollution in central Israel, and will encourage the much-needed dispersal of population and employment from the center of the country to its periphery. The overall length of the highway will be approximately 300 kms, from the Galilee region to the Beer Sheba area. It has been planned with maximum consideration for the environment, natural surroundings, and historical sites. Its design includes the highest modern engineering standards and safety considerations. It is planned as an expressway, with designed speeds of 120 to 130 km per hour, and two to four lanes in each direction. The first phase is planned to be 90 km in length, running parallel to the greater Tel Aviv metropolitan area, and will cost approximately $750 million. The cost of the entire highway is estimated to be $2 billion. The Knesset has passed legislation enabling Phase 1 of the highway to be built as a toll road concession. Four consortia have prequalified and been invited to submit proposals to finance, design, construct, operate and maintain Phase 1 of the highway through a public-private partnership. In addition to the leading Israeli members of the construction and finance industries, these consortia include some of the most prominent international construction firms and operators of toll highways. It is anticipated that a consortia will be awarded the concession during the first half of 1997, and that the selected concessionaire will complete the construction of Phase 1 four to five years later. In order to facilitate the implementation of the project, the Government has allocated budgets for the construction of two major interchanges (Ben Shemen and Kessem) which are critical points for the completion of the project. Work on the Ben Shemen interchange is already at an advanced stage. The second phase of the Cross-Israel Highway project includes an additional 48 kms to the north and south of Phase 1.
Cross-Israel Highway
The Israel Lands Administration was established to oversee management of national lands, which account for more than 90% of Israel's total land area. By law (Israel Lands Administration Law 5720-1960), this land cannot be sold and can only be provided to developers for specific projects on long-term leases. The object is to ensure a preplanned use of the land and to prevent abuse of one of Israel's most valuable and irreplaceable assets. The first area of ILA activity relates to ongoing management of state lands: maintenance of real estate and preservation of property (contracting management and paying commissions to various agents, such as Amidar and Amigour, paying taxes to local authorities and the central government); mapping and surveying to facilitate registration and decision-making; financial activities (collection of leasehold fees). The ILA is also involved in transferring rights to urban and agricultural land and registering and settling land titles. The second area of ILA activity relates to planning in the programmatic sense, i.e., allocation of land uses and preparation of a land reserve, as well as investments to create and improve a land reserve for the nation and economy. This involves physical planning (outline plans, urban building plans, engineering plans, and various surveys), infrastructure development (initiating or participating in the activities of firms and local authorities), relocations, expropriations, and acquisitions. To perform its functions, the ILA follows work procedures that involve frequent contact with the citizen, in addition to various professional topics, such as planning, law, economics, mapping and surveying, fee collection, data-processing, etc. The rapid developments and changes in the Israeli economy are strongly reflected in land matters. Decisions, criteria, and work procedures must be frequently revised and updated. The ILA directorate has the following divisions: The Urban Division deals with the transfer of title in urban areas, real-estate management (in coordination with housing companies), tenants, relocations, invitations to bid, investments, and project initiation. The Agricultural Lands Division supervises uses of agricultural land, including for national parks, nature reserves, and forests; allocation of land for security needs; land uses for waterworks and electricity in rural areas. In addition, the division is responsible for activity in the Arab sector. The Purchase, Ownership, and Registration Division deals with registering and settling land title, registration in the land registries, purchases of land, amalgamations, exchanges, and expropriation. The Planning and Development Division handles physical planning and development and drafts programs to direct ILA land-reserve policies so as to satisfy the future land needs of the economy. It is also responsible for preparing investment plans. The Information Division deals with four areas:
The other divisions are Administration, Finance, Internal Audit, and Legal Advice. Districts: There are six districts: Jerusalem, Northern, Haifa, Central, Tel Aviv, Southern. The districts are responsible for implementing policy, under the guidance and direction of the divisions and staff units. Each district includes the following functions: administration, finance and bookkeeping, legal advice, contracts and transactions, purchases and expropriations, monitoring and follow-up, title registration and settlement, property registers, planning and development, and mapping and surveying.
Israel Lands Administration
The Galilee covers an area of some 3,260 sq.km. The population of the region is approximately one million Arabs and Jews (including thousands of recently arrived immigrants) living in about 400 settlements. In 1993 the Knesset enacted The Galilee Law. According to the provisions of this law, the Authority for the Development of the Galilee, the Authority's Board and its Executives were established, and the Authority was declared a corporation. The Authority's duties include mainly:
Outstanding projects include:
Galilee Development Authority
The main duties of the Negev Development Authority, as defined by law, are to initiate, plan and promote enterprises and activities that will advance economic and social development, and to coordinate all government and other authorities active in the development of the Negev. The Negev Development Authority has been authorized to encourage large corporations and government authorities to move their offices to the area, and promote other activities that will increase the population and facilitate the absorption of new immigrants. The target of the development, according to the forecast of the Negev Development Authority, is to increase population in the area by 500,000 inhabitants during the next ten years. This means turning Beer Sheba and its surroundings into the metropolis of southern Israel. Infrastructure development, such as road, railways, airports and industrial zones in the Negev must become a high national priority. In order to achieve these goals, the Negev Development Authority has prepared a 20 Project Plan, including:
Negev Development Authority Source: Israeli Foreign Ministry
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