Insiders Stress Importance of Israeli Infrastructure Development

December 9, 2012 9:55 am 0 comments

The Jerusalem Light Rail, one of Israel's recent infrastructure improvements. Photo: Matanya/Wikimedia Commons.

NEW YORK—“I guarantee it! Your investment will not return 500 percent,” Yehuda Raveh, managing partner of the Israel Infrastructure Fund (IIF), told a recent meeting of investors in New York.

What Raveh did promise was an innovative approach to the financing and development of urgently needed transportation, water, communications, and energy infrastructure projects in Israel, coupled with reliable returns of up to 17 percent for investors in the country’s future.

“An ideal situation for institutional investors and high-net-worth individuals who believe in Israel,” Raveh told JNS.org on Nov. 27.

Israel is a nation quite literally on the move. In just more than six decades, the Israeli population has increased almost 15-fold, going from 600,000 in 1948 to more than 8 million in 2012. Multiple waves of immigration have been characterized by diversity—Russian, Ethiopian, Yemeni, North American and many others.

The brightness and security of the nation’s future is “enhanced by investment in its infrastructure,” Consul General of Israel in New York Ido Aharoni said at the investors’ meeting, especially considering that Israel finds itself in a Middle East “where the entire regional order has become a regional disorder.” The strong performance of the Israeli economy, its rising stock market, and a government policy that recognizes the importance of investment and attention to infrastructure are essential elements of future planning, Aharoni said.

Sigalit Siag, chief fiscal officer of the Israeli Economic Ministry, said facilitating infrastructure growth “encourages significant investment from foreign entities.” She anticipates that about 75 billion shekels will be allotted to transportation during the next five years.

The IIF is helping to meet Israel’s mobility challenge by developing a cooperative model of government and private-sector funding integration that gets things done. Its Highway 431 project was completed significantly prior to its due date, according to Raveh.

“That has never happened in the public sector,” Raveh told JNS.org. Had the project not been finished on time, the IFF would have been fined 1 million shekels per day for the delay, Raveh said.

In Jerusalem, Mayor Nir Barkat—a former venture capitalist—is leading the charge to augment the ancient city’s rich historic character with a modern and global feel through partnerships, investment, and infrastructure development.

At a Nov. 15 talk with aspiring leaders at the Harvard University Kennedy School of Government in Cambridge, Mass., Barkat described the need for a new model of governing—one that emphasizes working with diverse communities and private-public partnerships. He described the development of local councils under his leadership to give a voice to the diverse array of Jerusalem communities—secular, Arab, Haredi, and Christian. Furthermore, drawing on his business background, he advocated for the creation of a young management team that led the way in forming private-public partnerships that leverage Jerusalem’s unique history, diversity, and strengths in education and life sciences to create new opportunities for investment and growth.

Barkat specifically touted the NIS 8.5 billion plan to build 12 skyscrapers at Jerusalem’s entrance as part of a massive modern business district as the result of his model. The project is expected to bring 40,000 new jobs to the city and allow Jerusalem to compete in the global marketplace.

During a Nov. 11 meeting in New York focused on expansion of development in the Negev, former Prime Minister Ehud Olmert noted that infrastructure improvements, especially high-speed railways, unify the country and increase the efficiency of travel from the north to the south. He praised rail development overall, but noted that several rail projects have not met their scheduled start dates. Asked by JNS.org how private investment in the construction and operation of transportation infrastructure could impact cost and efficiency—and help meet or beat completion deadlines—Olmert declined to answer, citing a need for additional information.

Founded in 2007 to foster development of transportation, water purification, energy, communication, and other significant infrastructure projects, the IIF has partnered in such projects as CityPass, the 23-station Jerusalem light rail system that began operations in August 2011. The IIF participates in the management of Highway 6, known as the Cross Israel Highway, Highway 431, energy pipelines, energy production, and communications projects.

Five years after its founding, the IFF manages more than $1 billion of infrastructure investment—largely in Israel.  The fund can virtually guarantee significant returns to institutional and individual investors based on government guarantees.

“No war, no situation will negatively affect energy, transportation or water purification,” Raveh said. “These are not negatively affected; consumption actually goes up in times of crisis… These stable, continuing investments are little affected by crises, hostilities, or economic changes.”

Responding to a question concerning the safety of investing in Israel, Raveh said, “Don’t believe every word you read in the newspapers. Tel Aviv was never attacked, nor was Jerusalem. Investing in Israel has steadiness and assurance.”

—With reporting by Sean Savage

Leave a Reply

Please note: comments may be published in the Algemeiner print edition.


Current day month ye@r *

More...

  • Book Reviews Commentary In ‘America in Retreat,’ a Real-Life Risk Board

    In ‘America in Retreat,’ a Real-Life Risk Board

    JNS.org – “Risk: The Game of Strategic Conquest,” the classic Parker Brothers board game, requires imperial ambitions. Players imagine empires and are pitted against each other, vying for world domination. Amid this fictional world war, beginners learn fast that no matter the superiority of their army, every advance is a gamble determined by a roll of the dice. After a defeat, a player must retreat. Weighted reinforcement cards provide the only opportunity to reverse a player’s fortunes and resume the [...]

    Read more →
  • Beliefs and concepts Sports Does Working Out With Other Jews Keep You Jewish?

    Does Working Out With Other Jews Keep You Jewish?

    JNS.org – For Daphna Krupp, her daily workout (excluding Shabbat) at the Jewish Community Center (JCC or “J”) of Greater Baltimore has become somewhat of a ritual. She not only attends fitness classes but also engages with the instructors and plugs the J’s social programs on her personal Facebook page. “It’s the gym and the environment,” says Krupp. “It’s a great social network.” Krupp, who lives in Pikesville, Md., is one of an estimated 1 million American Jewish members of more [...]

    Read more →
  • Sports US & Canada Sports Illustrated Profiles Orthodox NCAA Basketball Player Aaron Liberman

    Sports Illustrated Profiles Orthodox NCAA Basketball Player Aaron Liberman

    Sports Illustrated magazine featured an extensive profile on Orthodox-Jewish college basketball player Aaron Liberman on Wednesday.  The article details Liberman’s efforts to balance faith, academics and basketball at Tulane University, a challenge the young athlete calls “a triple major.” Sports Illustrated pointed out that Liberman is the second Orthodox student to play Division I college basketball. The other was Tamir Goodman, the so-called “Jewish Jordan.” As reported in The Algemeiner, Liberman started his NCAA career at Northwestern University. According to [...]

    Read more →
  • Jewish Identity Sports Cycling the Desert: New Israel Bike Trail Connects Mitzpe Ramon to Eilat

    Cycling the Desert: New Israel Bike Trail Connects Mitzpe Ramon to Eilat

    As the popularity of cycling continues to increase across the world, Israel is working to develop cycling trails that make the country’s spectacular desert accessible to cyclists. The southern segment of the Israel Bike Trail was inaugurated on Feb. 24 and offers for the first time a unique, uninterrupted 8-day cycling experience after six years of planning and development. The southern section of the Israel Bike Trail stretches over 300 kilometers in length and is divided into eight segments for mountain biking, [...]

    Read more →
  • Jewish Identity Theater Forthcoming Major Action Movies Inspired by Jewish Comic Artist Jack Kirby

    Forthcoming Major Action Movies Inspired by Jewish Comic Artist Jack Kirby

    JNS.org – With the recent Oscars in the rearview mirror, Hollywood’s attention now shifts to the rest of this year’s big-screen lineup. Two of the major action films coming up in 2015—Avengers: Age of Ultron, which hits theaters in May, and the third film in the Fantastic Four series, slated for an August release—have Jewish roots that the average moviegoer might be unaware of. As it turns out, it took a tough Jewish kid from New York City’s Lower East [...]

    Read more →
  • Book Reviews Jewish Identity When Torah Teaches Life and Life Teaches Torah (REVIEW)

    When Torah Teaches Life and Life Teaches Torah (REVIEW)

    JNS.org – Rabbi Gordon Tucker spent the first 20 years of his career teaching at the Conservative movement’s Jewish Theological Seminary (JTS) and the next 20 years as the rabbi of Temple Israel Center in White Plains, N.Y. I confess that when I heard about the order of those events, I thought that Tucker’s move from academia to the pulpit was strange. Firstly, I could not imagine anyone filling the place of my friend, Arnold Turetsky, who was such a talented [...]

    Read more →
  • Arts and Culture Blogs Oscars 2015: Reflecting on Love at First Sight

    Oscars 2015: Reflecting on Love at First Sight

    JNS.org – I’m in love, and have been for a long time. It’s a relationship filled with laughter, tears, intrigue, and surprise. It was love at first sight, back when I was a little girl—with an extra-terrestrial that longed to go home. From then on, that love has never wavered, and isn’t reserved for one, but for oh so many—Ferris Bueller, Annie Hall, Tootsie, Harry and Sally, Marty McFly, Atticus Finch, Danny Zuko, Yentl, that little dog Toto, Mrs. Doubtfire, [...]

    Read more →
  • Blogs Book Reviews Examining America’s First Foray into the Middle East (REVIEW)

    Examining America’s First Foray into the Middle East (REVIEW)

    At the turn of the 21st century through today, American involvement in Middle Eastern politics runs through the Central Intelligence Agency. In America’s Great Game: The CIA’s Secret Arabists and the Shaping of the Modern Middle East, historian Hugh Wilford shows this has always been the case. Wilford methodically traces the lives and work of the agency’s three most prominent officers in the Middle East: Kermit “Kim” Roosevelt was the grandson of president Theodore Roosevelt, and the first head of [...]

    Read more →



Sign up now to receive our regular news briefs.