Veolia subsidiary Transdev has completed the sale of its stake in Jerusalem Light Rail (JLR) to a consortium of Israeli investors.
Veolia, which owned a 5 per cent shareholding in CityPass, the company that constructed the line, and 100 per cent in the line’s operator – Connex Jerusalem, has been gradually disposing of its Israeli assets.
In August, it completed the sale of Connex Jerusalem to an Israeli holding company jointly owned by the Ashtrom Group, IIF and Harel Insurance, reported Israel’s financial newspaper The Marker.
In a separate deal, Transdev’s stake in CityPass has been acquired by IIF.
Jerusalem Light Rail opened in 2011. The 14-kilometre network consists a dual-track line from Pisgat Ze’ev through the Old City, city centre and Mount Herzi, serving both West Jerusalem and occupied East Jerusalem.
The sale had been blocked by Israel’s government on the grounds that it did not want to see an inexperienced company take over the line’s operation.
“Due to the controversy surrounding the light rail, it appeared that international companies were hesitant to take on Veolia’s role, additionally with an unexperienced local transportation sector, Veolia was unable to sell Connex Jerusalem and its minority share in CityPass for years,” reported research organisation Who Profits.
“Apparently, negotiations have now ended with the removal of the Israeli government’s objection to an unexperienced buyer and the acceptance of the CityPass consortium as capable rail operator.”
