The Finance Ministry has temporarily resumed funding.
Sources inform ''Globes'' that Israel Railways has begun paying contractors and suppliers for last month after the Ministry of Finance agreed to temporarily resume budget transfers to the company. Last Thursday, the ministry decided to transfer NIS 90-100 million to cover Israel Railways' bills, until the parties agree on a solution to the Railways' development budget overruns.
Joint teams from the Ministries of Finance and Transport and Israel Railways will examine rail projects currently underway. If the teams find that a project has not greatly exceeded its budget, additional funds to pay contractors will be released. The high-speed Tel Aviv-Jerusalem rail link will apparently not be affected, but other rail links will be delayed.
Published by Globes [online], Israel business news - www.globes-online.com - on June 11, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008