Chinese companies threaten legal action as the selection of operator for two tram lines in Gush Dan is once again delayed.

NETA, the state-owned company, has once again delayed the tender for the maintenance of the “purple” and “green” tram lines in Gush Dan, which are expected to be completed by 2027 and 2028. Originally scheduled for May 2023, the tender has been postponed multiple times, with reasons including the recent war and concerns about Western companies participating in the process. The new date for the tender has been moved from May 30 to June 19.

Chinese state-owned companies China Civil Engineering Construction Corporation (CCECC) and Guangzhou Metro Corporation, who are part of consortiums that have already submitted bids for the tender, have issued a warning to NETA that they will take legal action to claim damages if the tender is canceled. Previously, Chinese companies CRCC and CRRC attempted to challenge NETA’s decision to exclude them from the final stage of the tender for the tram lines, citing economic feasibility concerns.

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