Israel’s Tel Aviv metropolitan metro project has reached a critical stage with the publication of its first international tenders for the construction of the inner ring and the start of preliminary infrastructure work on the ground.
The ambitious network is planned to include three underground lines, M1, M2 and M3, spanning 150 kilometers (about 93 miles) with 109 stations and linking 24 local authorities across central Israel, the Sharon region and the south. Despite its scale and engineering complexity, the Metro Authority and Netivei Ayalon maintain a target of gradually operating the first lines from 2034, though realistic assessments suggest no clear timetable for launching the massive project.
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Miri Regev and Benjamin Netanyahu place a cornerstone
(Photo: NTA - Metropolitan Mass Transit System Ltd.)
State Comptroller Matanyahu Englman said the challenges facing the metro are enormous, including costs amounting to tens of billions of shekels (tens of billions of dollars), the movement of thousands of heavy trucks through the heart of the Tel Aviv area and the removal of millions of cubic meters of soil from roughly 300 kilometers (about 186 miles) of tunnels. He warned that delays are already causing economic damage estimated in the tens of billions of shekels (tens of billions of dollars) and that inadequate preparation could further delay completion, disrupt daily life for millions and significantly raise costs.
In a report published Tuesday, the comptroller presents a comprehensive picture of the difficulties surrounding the project. While Prime Minister Benjamin Netanyahu and Transportation Minister Miri Regev recently held a ceremonial groundbreaking event with Ayalon Highway, local officials and government representatives, the audit points to serious structural failures already evident at this early stage.
Chief among them is the absence of a stable coordinating body. The Metro Authority was established in 2021 and currently has only five employees. Its director, Uzi Itzhaki, appointed after a three-year delay, served only a few months. The comptroller questioned how a project whose legally approved cost now stands at 177 billion shekels (about $56 billion) can operate without permanent leadership.
The report warns that the lack of a stable coordinating authority is severely undermining project management. It also notes that Netivei Ayalon, the Transportation Ministry and the Metro Authority have not completed preparations to absorb some 16,000 foreign workers and experts required for construction, nor secured sufficient specialized machinery and equipment.
No comprehensive plan has been finalized to address expected traffic congestion, including tens of thousands of truck journeys each month through urban centers, a gap the report says could cause widespread delays.
The comptroller also cites a severe shortage of engineering capacity. Tunnel boring machines are not currently available in Israel, and experience relies largely on foreign contractors, for whom tenders have yet to be finalized. Laboratory capacity and test drilling are limited, while Israel faces an acute shortage of civil engineers and difficulties recruiting foreign workers amid the security situation.
Coordination between agencies also remains incomplete. No service-level agreements have been signed with telecommunications companies, an agreement with the Water Authority is still pending and no dedicated traffic authority has been defined, despite the project affecting 24 municipalities. Decisions on logistics centers and traffic management frameworks have yet to be finalized.
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Simulation of the metro in Tel Aviv
(Photo: NTA - Metropolitan Mass Transit System Ltd.)
The report highlights major budgetary risks. The updated cost estimate stands at about 177 billion shekels (about $56 billion) after indexation, with a potential increase of 12 billion shekels (about $3.8 billion) already emerging. Dedicated tax revenues, which are meant to cover half the funding, are uncertain, and interim financing of tens of billions of shekels (tens of billions of dollars) will be required. The Finance Ministry has yet to finalize a framework to bridge those gaps.
A central political risk involves the congestion charge, which is legally designated as a key funding source for the metro. Transportation Minister Regev has repeatedly opposed its implementation, despite a contractor already being selected and a planned launch in 2027. The comptroller warned that without congestion pricing revenue, the entire project faces serious financial and planning uncertainty.
Although partial operation is slated for 2034 and full operation for 2037, delays are already evident. Contracts with line managers were signed months late, timelines are misaligned and tunnel excavation progress has reached only about 45 percent of planned targets between 2020 and 2024.
Englman called for urgent steps, including completing the Metro Authority’s leadership structure, removing regulatory and logistical barriers, finalizing equipment and staffing preparations, signing coordination agreements, strengthening budget planning and securing long-term funding and manpower.
Failure to complete these measures, he warned, could lead to economic losses of tens of billions of shekels (tens of billions of dollars) and significant harm to daily life in the Tel Aviv metropolitan area. Proper implementation, however, could yield annual benefits of similar magnitude and transform Israel’s transportation system.
The Transportation Ministry said it views the report as an important professional oversight tool and will examine its findings and recommendations. Netivei Ayalon said it has launched unprecedented tenders worth 65 billion shekels (about $20.5 billion) for tunnel excavation and is committed to advancing the project with transparency and professionalism.