How the UK and Israel can collaborate to build Israel’s infrastructure of tomorrow

How the UK and Israel can collaborate to build Israel’s infrastructure of tomorrow | CTech

Posted by Admin August 13, 2024 Infra

As Israel moves forward with its ambitious infrastructure development plan over the next decade, there is a tremendous opportunity for collaboration between Israeli and British companies to bring these critical projects to fruition.

From metro systems to desalination plants, Israel is planning major investments that align with UK expertise in engineering, construction, and project management. By joining forces, Israeli and British firms can leverage their complementary strengths to deliver world-class infrastructure that will power Israel’s economic growth for generations to come.

200 projects worth $120 billion

The scale of Israel’s infrastructure ambitions and active pipeline is far-reaching. In 2020, the Prime Minister’s Office announced Israel’s ‘Infrastructure for Growth’ plan, comprising of over 200 projects with a total value of $120 billion. This spans across sectors including construction, water, energy, and transportation. The government plans to boost infrastructure investment to 4-5% of GDP annually by 2035, up from 2.5-3% currently. With Israel’s population growth estimated to continue at 2% per year, these investments are crucial for the country’s future.

The crown jewel of this programme is the new Tel Aviv Metro, an additional $50 billion undertaking that will revolutionise transportation in Israel’s largest metropolitan area. This massive project includes three lines, 109 stations, seven large depots, and 150km of twin-track tunnelling. When completed, it will carry over two million passengers daily, making it the largest infrastructure project ever undertaken in Israel.

A wealth of opportunities

For UK companies, this programme represents a wealth of opportunities across the infrastructure value chain. British firms are global leaders in areas like rail engineering, tunnelling, airport design, water treatment, and renewable energy – all key focuses of Israel’s development plans. The UK’s experience at home and abroad in delivering complex mega-projects can be invaluable as Israel takes on similarly ambitious schemes.

One example is Crossrail International, an arm’s length body of the UK’s Department for Transport, which won a government-to-government tender to support the Israeli Ministry of Transport and NTA with subject matter experts from the UK. WSP UK has been awarded one of the three Line Manager roles on the Tel Aviv Metro.

There are several key areas where UK-Israel collaboration could yield particularly fruitful results:

Transportation: Beyond the metro, Israel is investing in light rail, heavy rail, and a new international airport designed to accommodate 20 million passengers annually. British expertise in these areas could be instrumental.

Water: UK desalination companies could contribute to projects like renovating and expanding the existing facility in Ashkelon and developing new plants through public-private partnerships.

Waste Management: With Israel ranking as the second-largest user of single-use plastics globally, there’s an urgent need for waste treatment solutions. By 2033, Israel plans to establish nine Waster-to-Energy plants and seven additional waste sorting facilities – areas where UK firms have significant expertise.

Energy: As Israel focuses on solar power for renewable energy, there is a growing need for energy storage and battery solutions – another area where British technology could play a crucial role.

Housing: With Israel building nearly 70,000 housing units annually, there are opportunities for large UK residential construction companies. The Israeli Ministry of Construction and Housing is actively encouraging foreign firms to enter the market.

To fully capitalise on these opportunities, UK and Israeli companies should explore partnerships that combine their respective strengths. Israeli firms bring invaluable local knowledge, relationships, and experience navigating the country’s regulatory landscape. UK partners can contribute world-class technical capabilities, project management expertise, and access to global supply and financing.

The timing is critical, particularly for the Tel Aviv Metro project. Large tender packages will be issued every few months starting at the end of 2025 and continuing into 2026. UK firms interested in participating should begin engaging now to position themselves effectively.

While the current geopolitical context remains challenging, the UK government maintains its commitment to strengthening economic ties with Israel while also advocating for a resolution to the regional conflict. Most recently, the UK government announced intentions to resume negotiations on the UK-Israel Free Trade Agreement (FTA).

Rewarding for both nations

Despite these challenges, the potential for the UK-Israel infrastructure collaboration remains enormous. By working together, our nations can construct not just physical assets, but also a legacy of shared innovation and prosperity. From reducing traffic congestion to improving water security and waste management, these initiatives will have far-reaching positive impacts on the quality of life and economic competitiveness in Israel.

As Israel lays the foundations for its future growth, there is a historic opportunity for British and Israeli companies to work hand-in-hand in building tomorrow’s infrastructure. The journey may be long – the Tel Aviv Metro isn’t expected to be fully operational until 2027 – but the rewards for both nations will be well worth the wait.

Ronee Isaacson is a UK-qualified solicitor and Head of Exports at the British Embassy in Israel, supporting UK companies to enter and expand their business in Israel