Israel continues to embrace the concept of project finance and numerous projects are currently in development. In particular, the government looks favourably at developing Israel's infrastructure through the implementation of build-operate-transfer projects.
The build-operate-transfer (BOT) model has proved successful as a means of implementing large-scale infrastructure projects where state funds are unavailable and where the efficiencies of the private sector are beneficial. Recently, the lack of water in Israel and surrounding regions has led to some interesting BOT financing developments that have universal application.
Including: Background; Procedure; Comment.
The Cross-Israel Highway project is the first major privately financed project to be implemented in Israel. It serves as an important experience for the government, lending institutions and the private sector, and sets the standard for future projects in Israel.