A historic agreement was signed to settle the assets of the Israel Electric Corporation, which will enable the development of thousands of housing units, employment areas and the easing of traffic congestion in Tel Aviv-Jaffa

According to the agreements signed by the State of Israel, the Israel Electric Corporation, the Israel Lands Authority and the Tel Aviv-Jaffa Municipality, the Israel Electric Corporation will transfer to the Israel Lands Authority and the Tel Aviv Municipality 16 properties that are not used by the company.

The State of Israel, the Israel Electric Corporation, the Israel Lands Authority and the Municipality of Tel Aviv-Jaffa signed an agreement Wednesday, 16 Teves, regarding the arrangement of the Israel Electric Corporation’s assets. The agreement leads to the realization of the economic benefits of the IEC’s assets, thus facilitating the barriers to development and housing throughout the country, particularly in the city of Tel Aviv-Jaffa.

Under the leadership of the Accountant General at the Ministry of Finance, Rony Hizkiyahu, the parties reached a breakthrough that will lead to the signing of a historic agreement between the State, the Electric Corporation and the Tel Aviv-Jaffa Municipality. On the part of the State, representatives of the Israel Land Authority, the Accountant General’s Office, the Budget Division and the Government Companies Authority took part in the negotiations.

According to the agreement signed, the IEC will vacate 16 properties throughout the country, including central properties in Tel Aviv-Jaffa, in a manner that will enable the immediate development of thousands of housing units in the heart of the demand areas.

Among the properties that are being vacated are areas at the Reading site that will enable the development of the port area to the north, areas in the Yarkon area, a beach in Eilat and potential residential areas in Jerusalem. As part of the deal, the costs of the evacuation and construction of some of the properties will be financed by the Israel Lands Authority. In addition, in accordance with the terms of the perpetual debentures issued by the Company to the State of Israel, IEC will be able to repay them in return for their nominal value of NIS 15.5 million, which will improve the Company’s capital structure and its financial position.

Minister of Finance Moshe Kahlon: “The agreement signed today is a direct continuation of the policy that we have led in the last two years to evacuate areas held by various parties for public use. At the heart of the demand areas, we will continue with the same policy and evacuate additional areas that are held by government bodies for the benefit of Israeli citizens.”

Accountant General Roni Hezkiyahu: “The agreement signed is the result of exceptional cooperation between the state, a government company and local authorities, from which all the parties benefit, and we believe that through cooperation we can achieve many other achievements for the benefit of the public.”

(YWN – Israel Desk, Jerusalem)