Worth 28 billion shekels: Is this the move that will upgrade public transportation in Israel?

Sectoral framework agreements have been signed between the Israel National Public Transport Authority and leading public transport operators in Israel, worth 28 billion shekels. The move includes thinning out low-demand lines, changing the compensation model to be partially based on passenger validations, and extending metropolitan concessions by four years.

After months of negotiations, sectoral framework agreements were signed this morning (Monday) between the Israel National Public Transport Authority and most of the leading public transport operators in Israel, worth 28 billion shekels. The move is expected to significantly change the industry: the service line network will be upgraded, low-demand lines will be thinned out, and service will be redirected to high-demand areas. The compensation model will change so that about 15% of it will be based on passenger validations and 85% on kilometers traveled, unlike the current situation where companies were compensated only for kilometers driven. As part of the arrangement, the operating period of the four metropolitan transport clusters has been extended by an additional four years. The Authority's CEO, Idan Mualem, stated that the agreement constitutes a milestone in the public transport industry and ties financial incentives to the level and quality of service.