Revenue agreement stretched to Trans-Israel's northern section
The franchise agreement between the state and the Derech Eretz consortium - the franchise holders for the main section of the Trans-Israel Highway - is to be expanded to include the northern section of the highway from Wadi Ara to Elyakim.
As part of the expansion of the franchise agreement, the state will increase its revenue target by 22 percent. The revenue target is derived from the number of vehicles expected to travel on the road and is used as a basis for the calculation of the guarantee the state gives investors to reduce their risk.
Under the terms of the franchise agreement, every year a comparison is to be made between the revenue target and actual revenue. If the actual revenue is lower than the revenue target, the state will pay the concessionaire 72 percent of the difference, while if the actual revenue is higher than the target, the concessionaire pays the state 57 percent of the difference.
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