Danya Cebus suing state over Route 431

The claims and counterclaims just can't seem to stop when it comes to route 431. Danya Cebus, the infrastructure firm that built the highway, has served the state with claims that now total NIS 700 million.

Danya Cebus has filed lawsuits based on differing interpretation of the franchise terms, and responsibility for delays in the project - the company blames the state.

The company also accuses the state of being behind delays in the land actually being freed for the works to begin.

At first the Africa Israel unit's claims were believed to total about NIS 200 million. But Danya Cebus is also claiming its alleged costs caused by changes handed down during the works. Some of the claims are being discussed by expert advisers to the project. Others have reached arbitration before retired justice Eliyahu Winograd.

Among other things, Danya Cebus blames the state for delays in building the eastern segment of road to Modi'in. The company expects its damage from "loss of traffic" to amount to NIS 100 million.

Route 431 connects the Ayalon freeway in Tel Aviv with Highway 1, then continues to Modi'in. It has been built as a private finance initiative: the Africa Israel group won the right to build the road and charge for its maintenance for 20 years, after which time it's supposed to transfer it to the state for free.

Generally speaking, the highway was opened in February 2009, though some parts remain uncompleted. Building it cost about NIS 2.5 billion. Danya Cebus' records show it has lost NIS 190 million on the project.

Danya Cebus had warned investors about its losses on Highway 431 in March 2008. The company is a local infrastructures and construction arm of Lev Leviev's Africa Israel Investments group.