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Israel National Roads Company

Ministry of Transport and Road Safety. Israel National Roads Company. Contractual Agreements with Foreign Parties. September 2011. Alon Applebaum, Head of the Legal Department. Introduction. Historical Approach to Contracting with Foreign Companies

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Israel National Roads Company

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  1. Ministry of Transport and Road Safety Israel National Roads Company Contractual Agreements with Foreign Parties September 2011 Alon Applebaum, Head of the Legal Department

  2. Introduction • Historical Approach to Contracting with • Foreign Companies • Current Policy and Requirements for • Foreign Service Providers at INRC • Anticipated Policy Changes • Conclusion Legal Department

  3. Historical Approach to Contracting with Foreign Companies • Correlation between supply and demand for • services • Focus only on Israeli service providers • No guidelines for cooperation with foreign parties Legal Department

  4. Current Policy and Requirements for Foreign Service Providers at INRC Currently, foreign contractors cannot act as sole bidders in INRC’s tenders The experience of the foreign contractor is not taken into consideration when complying with the threshold requirements Foreign contractors with expertise in tunnel construction can act as sub-contractors on behalf of registered Israeli lead contractors subject to the approval of the sub-contractor and his experience by INRC In Design-Build tenders, foreign contractors are permitted to participate in tenders within the framework of a joint venture with a registered Israeli contractor subject to min. 35% JV share of the Israeli partner Legal Department

  5. Current Policy and Requirements for Foreign Service Providers at INRC Designers within the Design-Build framework have to be registered in INRC’s designer pool INRC will consider designers outside of the pool subject to registration threshold requirements and INRC approval Legal Department

  6. Anticipated Policy Changes INRC plans to expand the participation of foreign contractors currently limited to Design-Build tenders to include Bill of Quantity tenders Furthermore, INRC will consider permitting presentation of the sub contractor's experience, similar to the field of tunnel construction Legal Department

  7. Anticipated Policy Changes INRC will establish a designated pool of consultants in the field of design and engineering Registration for the pool will be subject to threshold requirements, as well as review of consultant’s CV and references Pool participants will be eligible to cooperate with both, INRC and Contractors within the Design Build framework Legal Department

  8. Conclusion Growing demand for foreign service providers due to the increased project volume and limited capacity of the domestic market Possible further expansion of the contractual Agreement options by INRC based on the scope and quantity of projects Legal Department

  9. Thank you Legal Department

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