Shikun & Binui Concessions Division

The Concessions Division combines the Group’s financing, construction and operating capabilities of large-scale infrastructure projects with the extensive financial knowledge and aptitude, as well as a deep familiarity with the public sector. This unique combination renders Shikun & Binui a leading entity pertaining to PPP projects. The division is involved in most projects of this kind in Israel, as well as in a variety of mega projects worldwide. A large investment scale is required for constructing a long-term project, usually for a 25-year franchise period.

The Concessions Division closely guides projects it is involved in, as of the publication of the tender’s first stage through financing (closing financing), along the years of construction and operation through to the sale.

All of the Concessions Division’s projects are planned, constructed, and managed according to the Group’s vision. The Concessions Division also has offices in Texas, USA, and in Bogota, Colombia.

 

Selected projects currently under construction

The East Perimeter Road in Cundinamarca, Columbia. In 2014 Shikun & Binui won a tender to construct a toll road, located in the Bogota region. The estimated project construction cost is approximately $550 million.

A toll highway on route SH288 in Texas, USA. Shikun & Binui won, and is implementing, (with partners) a PPP project including planning, financing, construction, operation and maintenance of a highway toll road on route. $815 million.

Pumped Storage, Mount Gilboa, Israel. A BOT project for financing, planning, constructing and operating a 300 MW power station, the first of its kind in Israel, allowing energy storage and release, using water reservoirs at different elevations. Estimated cost is NIS 2.2 billion.

Generi 2 Office Building in Jerusalem. A PPP project that includes planning, financing, con-struction, operation, maintenance and delivery of three 9-storey buildings, for 6 government ministries.

 

Select completed projects

Israel Police Academy, Beit Shemesh. A BOT project including planning, financing, managing, operating, maintenance and instruction services for Israel Police for 25 years, construction cost is NIS 600 million. The construction emphasized sustainability aspects.

The New Tel Aviv Courthouse. A modern Law Courts tower building was inaugurated in 2014. The building contains 52 courtrooms, 78 judges’ chambers, and a detention room. The building was designed as a green building, highlighting energy and water efficiency savings.

The Carmel Tunnels Project in Haifa. The first of its kind toll tunnels road in Israel. Constructed at a NIS1.25 billion investment, in a BOT method, for a period of 35 years. The project includes 4 tunnels at an overall length of 10 km, with the largest interchange in Israel, containing 7 bridges and ramps, as well as advanced technological systems which enable command and control. Environmental matters were stressed, including noise and air quality monitoring.

Highway 6 (Cross Israel Highway). This project is the first of its kind for several reasons: the BOT project of its kind in Israel, the first toll road in Israel, and the longest highway nationwide. The highway is currently 138 km long, with 12 interchanges, two tunnels and 100 bridges. During the next several years it is expected to reach 247 kilometers. Its construction required professional expertise, including overall planning, detailed planning, paving, maintenance, financing and operating a smart electronic toll-collection system (of the most advanced worldwide), and management of a variety of environmental issues. In 2013 Shikun & Binui sold its shares in Highway 6. Shikun & Binui continues holding 35% of the shares of the company operating the highway.

Road rehabilitation, upgrade and maintenance (Northern Lanes). The PFI project (Private Finance Initiative) for the rehabilitation, operation, maintenance and financing the road network in the north of Israel in an overall length of 270 km. for a concession period of 20 years. Shikun & Binui constructed cycle paths with Megiddo Regional Council.

The Hadera Desalination Plant. This plant supplies one sixth of the household consumption of water in Israel. Until recently, it was the largest plant worldwide using reverse osmosis. Located near Orot Rabin Power Station in Hadera. The project was constructed with a NIS 1.5 billion investment, as a BOT project won by ID2H Ltd., held by Shikun & Binui and by IDE Technologies Ltd., for supplying 127 million cu.m. annually. The group planned, financed, constructed and currently operates the plant, and sells the water to the government of Israel at a pre-defined price. This arrangement will last 25 years (including construction), at the end of which (in 2032) the plant will be delivered to the Israeli government. The unique finance transaction, with European Investment Bank EIB and other European banks, won Finance Deal of the Year for 2007 from the exclusive financial magazine “Euromoney’s Project”.