[Dr. Aaron Lerner - IMRA: Question: what country in the region would have
the chutzpa to interfere with the operation of a transportation system with
a Chinese government connection?]

Israel, China agree to build Eilat railway
Transport Minister Yisrael Katz and China's Minister of Transport Li
Shenglin signed the memorandum of understanding in Beijing today.
3 July 12 14:30, Amiram Barkat
http://www.globes.co.il/serveen/globes/docview.asp?did=1000762276&fid=1725

Israel and China today signed historic cooperation agreements to build the
Eilat railway and future projects, including the inland canal port north of
Eilat. Minister of Transport Yisrael Katz and China's Minister of Transport
Li Shenglin signed the memorandum of understanding in Beijing.

Katz departed for a three-day visit to China at the head of a 12-member
delegation of ministry officials and executives of government companies. The
main project on the agenda is construction of a cargo rail line that will
link Israel's Mediterranean ports in Ashdod and Haifa with the Eilat Port.
There are also plans to extend the line to Jordan's Aqaba Port.

Prime Minister Benjamin Netanyahu has declared the Eilat railway a national
priority project, because of its strategic and policy importance. Israeli
sources told "Globes" that the Chinese also consider the project to be
important, as it fits in with China's global strategy to strengthen critical
trade routes. The 180-kilometer line will run through the Arava Valley and
Nahal Zinn. Netanyahu wants to cut travel time between Tel Aviv and Eilat to
two hours.

The estimated cost of the line is at least NIS 20 billion. In talks with the
Chinese, they proposed financing part of the cost through the
government-owned China Development Industrial Bank, and that Israel handle
the project's operations.

Israel is considering awarding construction of the project to Chinese
companies, because of their rapid work, and is therefore considering a
government-to-government agreement to bypass the Tenders Law in awarding the
franchise. A cabinet decision from February instructed Prime Minister's
Office director general Harel Locker to recommend to the government ways of
financing the project.

Tonight, the Israeli delegation will be guests at a special dinner given by
the Chinese government. The food will be kosher lemehadrin, in part because
delegation member Shaul Bitterman who represents Chinese companies in Israel
is an Orthodox Jew.

Published by Globes [online], Israel business news - www.globes-online.com -
on July 3, 2012