Dan to buy 5% stake in Jerusalem light rail from Veolia
The Dan Bus Company is buying out Veolia Transport's 5% stake in the Citypass light-rail consortium as well as the French company's rights to operate the local Jerusalem railway, for a total of $15 million. The deal is awaiting approval from the state.
Observers expect other Citypass partners to oppose the deal, in part because Dan has no experience in handling railways. Veolia will probably be asked to stay in the picture for an additional five to seven years, in order to teach Dan how to operate the train system.
As reported in June by TheMarker, Veolia decided to abandon the project partly because of delays and difficulties in constructing the light-rail itself, but also due to pressure from pro-Palestinian groups.
The partners in Citypass are Ashtrom (27.5%), Alstom (20%), Harel (20%), Polar Investments (17.5%), Israel Infrastructures Fund (10%) and Veolia (5%).
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