Controversial Eilat port privatisation snowballs

Preliminary qualification documents had been issued in advance of the tender, which is due to be launched at the end of this year.

On offer is 100% of the equity in Eilat Port Company for a period of 15 years, after which shares will have to be sold back to the state. Compensation will then be made for any investment made in the port. However, there will be a possible 10 year extension option, but this will be linked to levels of traffic generated during the first three years of ownership.

The announcement has been made despite negotiations with trade unions not having been completed. They want to sign a collective employment agreement prior to privatisation. Also opposed to the deal is the Ministry of Defence, which is seeking to block the privatisation given that it is opposed to the possible 10-year extension.