5
Jul
2015

Adv. Joseph Benkel, represents the State of Israel, by the Accountant General of the Ministry of Finance against the Concessioner – MTS (a corporation held by five large Israeli and international corporations, such as Siemens) in an arbitration regarding the largest infrastructure project in the history of Israel – the “Red Line” project of the Tel Aviv Light Rail

Further to the State’s decision of 2010 to nationalize the project and withdraw MTS’s guarantees on the grounds of MTS’s breach of its contractual undertaking , MTS filed an action for the enforcement of the concession contract and for damages amounted to over 2.5 billion NIS, claiming for unlawful termination of the agreement by the State. The State filed a cross action for damages amounted to 3.5 billion NIS. The Dispute Resolution Panel denied MTS’s claim and ruled that the State was entitled to terminate the agreement with MTS and withdraw MTS’s guarantees.

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