The ministries are highly critical of the extensive budget overruns and say that these stem from improper planning.
"Globes" has learned that Israel Railways has asked for an additional NIS 12 billion and an extension of its development plans till 2013. The Ministry of Finance and the Ministry of Transport will discuss on the matter this Sunday.
Of the NIS 12 billion, NIS 5.6 billion is for items which were not originally included in the plan, while the remainder is for completed or pending projects which have exceeded their budget.
The original development plan included an investment of NIS 20 billion for 2003-2008. In April 2006, the plan was extended to 2011 and an additional NIS 5.9 billion was budgeted to Israel Railways bringing the cost of the project to NIS 25.9 billion.
The ministries are highly critical of the extensive budget overruns by Israel Railways, and say that they stem from improper planning in the original plan.
Published by Globes [online], Israel business news - www.globes.co.il - on November 28, 2006
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