Egged Disqualified from Massive Hasmonean Public Transport Tender
The National Public Transportation Authority disqualified Egged from the 5.5 to 7.5 billion shekel Hasmonean cluster tender, citing strict statutory market limits and vehicle-kilometer caps.
The National Public Transportation Authority has decided to disqualify Egged from participating in the upcoming competitive tender (No. 16/26) for operating bus lines in the Hasmonean cluster, covering Modiin, Modiin Illit, Lod, Ramla, Shoham, and surrounding settlements.
The tender includes a massive operational scale of approximately 26 million vehicle-kilometers annually, reflecting an estimated budget of 500 million to 650 million shekels per year, totaling between 5.5 billion and 7.5 billion shekels over the entire franchise period of 10 to 12 years.
In a letter sent by Authority Director Idan Moalem to Egged CEO Gilad Riklin, it was clarified that the company exceeds competition limits and the mileage quota permitted by law. Egged's disqualification is based on the government's 2017 competition reform program.
Regulatory Limits and Quotas
The program is designed to open the sector to competition, diversify public transport operators, and gradually dismantle the historical dominance of Egged and Dan. Under this framework, Egged was assigned a unique participation limit of up to 35 million annual vehicle kilometers in new wins for clusters scheduled to operate until 2029.
Since Egged previously won the "Envelope West Jerusalem" cluster tender of about 15 million kilometers, it was left with a quota of only 20 million kilometers—an allowance insufficient to compete for the Hasmonean tender, which stands at 26 million kilometers.
"This is a significant proportion highlighting Egged's dominance, while the share of the next operator stands at only about 12%," Moalem stated.
Rejection of Appeals and Future Steps
During a written hearing, Egged requested to update its mileage limit to 46.4 million kilometers due to overall industry growth since 2017, and offered to arrange a line-sale settlement if it won. Moalem rejected these demands outright, stating that the 35 million kilometer cap is absolute and non-indexed to market growth.
The Authority also declined Egged's request for an oral hearing, concluding that the company had been given an adequate opportunity to present its arguments. The tender is slated for publication in the coming days without Egged's participation.
