Infrastructure in Israel MEDA IPA Economists Meeting n’ 3 Marseille, 4-7 April 2005 ANIMA Danny...

Infrastructure in IsraelInfrastructure in Israel

MEDA IPA Economists Meeting n’ 3Marseille, 4-7 April 2005

ANIMA

Danny TalIsrael Investment Promotion Center

Content

Energy Water Infrastructure Communication Infrastructure Transportation Infrastructure Future Regional Projects

Future demand for energy in Israel 2001-2025Oil product20012025Annual increase

of demand

Electricity (Millions kwh) 42,67895,5803.2%

Coal (Thousands metric tons)11,56614,3770.9%

Natural Gas (Thousands metric tons)519,03233.3%

Crude oil products (Thousands metric tons):

Diesel fuel2,5414,8092.6%

Gasoline1,9542,8511.5%

Naphtha968946-0.1%

Kerosene1,0272,0612.8%

L.P.G - Liquefied Petroleum Gas4448582.6%

Light Residual fuel oil42514-13.7%

Heavy Residual fuel oil3,232251-10.2%

Other7612,5994.9%

Total required energy (Thousands metric tons)22,92247,7783.3%Source: Ministry of National Infrastructure

Solar Energy Systems

Sun-heated water tank was developed in Israel in 1953 by Isaschar Levi.

Today, hundreds of Israeli companies are active in this field

Israel is a leading country in the use of sun-heated water tanks

Solar energy system in Sde BokerPhotographer: Natan AlpertCourtesy of: National Photo Collection

Photographer: Saar Jacob

Courtesy of: National Photo Collection

Water Infrastructure

2004 Inventory: 31 Desalination Plants

Desalination Plants Distribution

Research and Multinational Projects

Mekorot - multitude of research programs Evaluation of advanced sea water pretreatment systems (for the

Middle East Desalination Center -MEDRC) Integrated Membrane System operation at Eilat and Ashdod Evaluation of advanced treatment and desalination systems for

polluted water (within the framework of the 3rd program of the EU)

Integrated Membrane System operation at Nahal Taninim Optimization of reverse osmosis systems powered by solar

energy (within the framework of the Non Nuclear Energy Program of the EU)

Research and Multinational Projects

Boron removal systems (within the framework of the 5th program of EU) including field tests at Eilat pilot plant

Development of advanced systems for aggressive waste streams treatment (within the framework of the 5thprogram of EU) including field tests at Greater Dan Waste Water Treatment Pilot Plant

Evaluation of competitiveness of nano-filtration technology as tertiary treatment of secondary effluents, for agriculture (in cooperation with Ben Gurion University)

Evaluation of improved ultra-filtration membranes for sea water and waste water treatment before desalination (in cooperation with a membranes manufacturer -Zenon, partially funded by Canada –Israel Industrial R&D Foundation)

Scope of Wastewater Treatment Activities

Mekorot is responsible for treating 32% of the wastewater in Israel (160 million m3 /year out of 500 million m3/year) in 9 plants of varying sizes, among them the Dan Region Plant, the largest in Israel.

The company uses a wide variety of advanced technologies, among them activated sludge (Dan Region, Beer Sheva, Afula), SBR (Rahat), and MBR (Netanya).

wwtp + reclamation

Dan Region

Telecommunication Infrastructure

2.9 million telephone lines - equivalent to 95% of households 6.5 million mobile phone – a 95% penetration rate 1.4 million multi channels TV - equivalent to 75% of households 860,000 Broadband Internet connections equivalent to 43% of

households

Source: Ministry of Communications

ISRAEL Telecommunication Statistics 2004

Population ~ 6.7 million. Households ~ 1.9 million.

phone lines tohouseholds

mobile per 100inhabitents

households tocable tv

digitalmultichannel tv

internet tobusinesses

internet tohouseholds

broadband tohouseholds

43% 55%

75% 72% 75% 95% 95%

Penetration Rates


Broadband regulation in Israel

Facility-Based Competition : ADSL Access (up to 2.5Mb/s downstream). Cable Modem broadband Internet services provided by cable

TV firms - the new entrants (up to 3Mb/s downstream). Unlicensed usage of the 2.4 & 5 Ghz WLAN technology as a step to

maximize the internet usage.

BROADBAND


Households` Broadband Penetration (end of 2003)

2%8%10%11%11%

15%16%19%19%22%25%25%27%

31%

14%14%

*43%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%


Broadband

920,000 broadband lines (600,000 ADSL lines; 320,000 cable modems).

Broadband subscriber growth ~50% last year. Broadband household penetration 43%. Broadband penetration per 100 inhabitants 14%.

Broadband Subscribers Growth in Israel

38 k

150 k

600 k

430 k

57 k

210 k

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2001 2002 2003 Oct. 04

0%

10%

20%

30%

40%

50%

ADSL CABLE MODEM Households' Penetration


In the coming years 3G UMTS networks will be able to offer internet access of up to 2Mb/s and a wide variety of services & content.

Commercial networks have been launched all over Israel. Cellular penetration is much higher than the penetration

of computers; thus 3G may prove to be a very essential medium for increasing broadband penetration.

3G Regulation in Israel


Transportation

Source: Ministry of Transportation

Transportation

Government investment in transportation infrastructure at the end of the 1990s was about $700 million, about 1% of the GNP.

by the end of 2004 it was doubled and surpassed the $2 billion mark.


Transportation

In line with government decisions, during the next 5 years investments in transportation infrastructure will average $2.2 billion a year, about 1.8% of the GNP.

During this period, the involvement of the private sector, including financing of projects, will increase significantly.

Projects that will be undertaken in the form of Public-Private-Partnerships during this period include the development of mass transit systems in the metropolitan area of Tel Aviv as well as in Jerusalem, highway development and finance of rail development.


Land Transportation

The number of vehicles in Israel has doubled from about 1 million in 1990 to over 2 million today, while the increase in population was only about 40%.

300 vehicles to 1000 residents, a 40% increase.


Land TransportationEncouraging the use of public transport

Expansion and development of the inter-city rail networks in 2003, the government approved a 5 years rail development program of about $4.5 billion.

Development of metropolitan mass transit systems as a result of government decisions. The first light rail lines in metropolitan Tel-Aviv and in Jerusalem have been tendered out as BOT (Build-Operate-Transfer) projects.

Development of bus lanes on major routes leading into the main cities.

Reforms in the bus and taxi systems. Reducing parking-availability norms, with priority given to public

transport and demand management.


Land TransportationImproved Management of the Road Network

Relieving traffic congestion on major highways, mainly by widening existing roads.

Road safety improvements, including emphasis on properly maintained roads.

Separation of local and inter-city traffic, mainly by developing by-pass roads.

Ensuring sustainable development and reducing the environmental effects of traffic.

Implementation of modern systems for traffic control and management.


Land TransportationIncreasing the involvement of the private sector

The Cross Israel Highway - the construction of the first BOT project has been completed and is in operation.

Highway 431 - in the tender stage.

Fast Lane on Highway 1 towards Tel Aviv - in the tender stage.

Highway 531.Source: Ministry of Transportation

Other Highway ProjectsThe Carmel Tunnels project

The Eastern Tunnels: 1.7 km (1 mile) twin tunnels connecting the north-eastern approach and Mt. Carmel.

The Western Tunnels: 3.1 km (1.9 miles) twin tunnels connecting Mt. Carmel and Haifa's southern approaches.


Other Highway ProjectsFast Lanes (“HOT”) to Tel-Aviv

The construction and operation of the project will be undertaken by the private sector as a BOT project.

The Fast Lane will be built along Highway 1 (the main highway) with preference given to public transport and high-occupancy vehicles.

Other vehicles will pay a variable toll, according to the level of congestion.


Railways Infrastructure

The first train from Jaffa to Jerusalem September 26th 1892


Rail Investment - $4.5 billion over the next 5 years


Main Objectives of the Development Plan

Expansion of the rail network Electrification of the rail system Rolling stock acquisition Expanding cargo services Planning future lines


The Tel Aviv-Jerusalem Express Line

The flagship project for the coming years is the Express Line (A1) between Tel Aviv and Jerusalem, which will connect Israel's two main centers in 28 minutes!

The distance between the two cities is indeed only a short 56 km (35 miles), but traverses difficult terrain which requires 20 km (12.5 miles) of tunnels and the construction of a station in Jerusalem 80 meters (260 feet) underground.

The first section, between Tel Aviv and Ben-Gurion Airport, was completed in 2004. The line to Jerusalem is expected to be completed in 2008 and is planned to carry 6-7 million passengers a year.

The estimated cost of the major section between Jerusalem and the city of Modi'in is about $700 million.


Developing Mass Transit Systems

Jerusalem Tel Aviv Haifa


Mass Transit System - Jerusalem

An impressive component of the first train line is the new 120 meter bridge, to be situated at the main entryway to Jerusalem


Seaports

Israel has 3 major ports: Haifa, Ashdod and Eilat. Handle cargo in excess of 35 million tons per year (including over 1.5

million containers). Projects totaling $1.0 billion to increase capacity are now underway.


Airports

Source: Lapam-The Israeli Governmental Advertising Agency

Airports

Israel's major airport is Ben-Gurion International Airport near Tel-Aviv.

Terminal 3 was opened In November 2004 The project cost $800 million capacity to handle 16 million passengers a year


Airports

Additional airports in: Haifa, Eilat and Ovda (near Eilat) Work will shortly begin on Timna International Airport located 20km.

north of Eilat at a cost of $150 million. Timna will replace Eilat and Ovda airports.

Haifa's airport is to be upgraded to international status at a cost of $400 million.


Thank You!Thank You!

State of Israel State of Israel

5 Bank Israel St., Kiryat Ben-Gurion Jerusalem, Israelwww.investinisrael.gov.il [email protected]

Tel: +972-2-6662607 Fax:+972-2-6662983

Ministry of Industry, Trade & LaborForeign Trade Administration

Investment Promotion Center

Infrastructure in Israel MEDA IPA Economists Meeting n’ 3 Marseille, 4-7 April 2005 ANIMA Danny...

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