Carmel Tunnel toll fees cut
The toll for driving through the Carmel Tunnels will be cut from NIS 8.60 to NIS 6.95 starting in January, the Finance Ministry announced. The price was originally due to rise to almost NIS 10 in 2018.
The ministry hopes that the agreement will lead to greater use of the tunnels and improvement in transportation in metropolitan Haifa.
“This is part of the government’s policy of reducing the external costs of urban congestion, while benefiting users and lowering the cost of living,” the ministry announced.
Globes reported six weeks ago that Finance Minister Moshe Kahlon had promised to lower the toll, following a public campaign against the planned toll increase. Kahlon announced at that time that the toll would be cut substantially within a few days, but the measure was delayed by prolonged negotiations with Carmelton, the franchise holder, which is owned jointly by Shikun & Binui Holdings Ltd. and Allied Holdings. The toll for the road has risen from NIS 5.70 when it was opened to NIS 8.60 at present, an increase of more than 50%.
Kahlon said, “This is great news for residents of Haifa and the North. The new agreement will save money for drivers and relieve traffic congestion in the city. We were not willing to accept a price rise at the beginning of 2018, and we have conducted intensive negotiations for the past month in order to lower it. We will continue doing everything possible to strengthen Haifa and provide relief for its residents and reduce their cost of living.”
The Carmel Tunnels project was opened to vehicular traffic in December 2010. It was constructed by the Carmelton group under the build, operate, transfer (BOT) method. The franchise period is due to expire in 2040, after which the project will revert to the state without compensation to the franchise holder.
From the beginning, the project has failed to meet revenue targets, and the state had to pay Carmelton NIS 50 million in compensation for the safety margin guaranteed to the franchise holder. Over the past two years, however, usage has increased, and the state currently receives tens of millions of shekels in annual royalties under the franchise terms.