Partner Group has been selected to provide the communications infrastructure for the congestion charge project in the Greater Tel Aviv metropolitan area, a national undertaking of strategic importance to the Israeli economy. The company announced its selection on Thursday. This critical project, designed to bolster Israel's economic resilience, saw its official launch date postponed from 2027 to 2028.
The initiative, awarded to Electra Group following a government tender, aims to reduce traffic congestion across Greater Tel Aviv. It will also encourage the use of public transportation, a vital step for maintaining the efficiency of Israel's economic heartland. A smart payment system will charge vehicles entering high-demand areas, with fees varying by time of day and location.
The Challenge to National Resilience
The Greater Tel Aviv area will be divided into three rings: an outer, a middle, and an inner ring. During the morning rush hour, from 6:30 a.m. to 10 a.m., drivers will face a NIS 10 charge for crossing each ring. The afternoon rush hour, from 3 p.m. to 7 p.m., will see reduced charges: NIS 2.5 for the outer ring and NIS 5 for the middle and inner rings. The daily charge will be capped at NIS 37.5. Taxis will pay 50% of the charge without a daily cap, while trucks will pay double the standard rate. Motorcycles and vehicles with disabled parking permits are fully exempt.
This project moves forward despite continued opposition from Transportation Minister Miri Regev, highlighting internal challenges to Israel's strategic development. The Knesset and the government have already approved the plan. However, the Transportation Ministry delayed publishing necessary tenders, forcing the Finance Ministry to issue them instead. Public opinion remains unpopular, even with support from transportation professionals and the urgent need to address the region's transportation crisis. Similar projects have successfully reduced congestion in Singapore, London, and New York, demonstrating their efficacy in modern Western cities.
Strategic Economic Investment
The project is expected to generate NIS 1.4 billion in annual revenue for the state. Half of this amount, NIS 700 million, will be allocated to expanding public transportation, providing a better alternative to private vehicles. The remaining revenue will help finance the Metro project, projected to cost more than NIS 175 billion. This massive investment is intended to offer the fastest and most significant alternative to the region’s traffic congestion, securing Tel Aviv's long-term economic viability.
The final decision on the launch date rests with the next government. The launch could be postponed until the end of 2028, after the planned opening of the light rail’s Purple Line, running from Yehud to Tel Aviv, and the first phase of the Green Line, connecting Rishon Lezion to Tel Aviv's Levinsky area. Avi Dvora, vice president of Partner’s business division, underscored the project’s significance. "We are proud to take part in a national project of strategic importance to the Israeli economy," Dvora stated.
Ensuring Operational Security
Congestion charges will be collected through 220 entry gates. Partner will provide the communications system for these gates. This system will receive vehicle identification data, cross-reference it with databases, and issue charges based on applicable rates. Such an operation demands a fast, secure, and reliable communications infrastructure, capable of operating around the clock for many years. The total operating period is expected to last at least two decades, with Partner providing continuous support. Partner is expected to receive tens of millions of shekels in revenue over this period. Electra Ltd., led by CEO Itamar Deutscher, won the interministerial tender to design, build, operate, and maintain the entire project. The company expects to receive approximately NIS 400 million for establishing the project, plus an estimated NIS 850 million over the concession period.