Israel Faces Critical Infrastructure Challenges Amid Planning and Regulatory Gaps
Leading industry experts warn that planning gaps, regulatory barriers, and political interference threaten critical infrastructure development in Israel across transport, water, and waste sectors.
Israel faces an urgent need for extensive investment in national infrastructure, yet planning gaps, regulatory hurdles, and political interference threaten to hinder progress. These challenges took center stage at a panel discussion titled "The Future of Infrastructure in Israel," moderated by Amir Kurtz of Calcalist.
Panelists included Yael Salomon, infrastructure directorate official at the Planning Administration; Gilad Oshri, head of large corporate and infrastructure banking at Bank Leumi; Eyal Ben David, vice president of development at Mekorot; Erez Hasdai, vice president of economics and regulation at Bezeq; and Ziv Sadeh, vice president of franchising and infrastructure at Dan Public Transportation.
Financial Overdraft and Long-Term Planning
Opening the discussion, Gilad Oshri of Bank Leumi warned that Israel operates in a financial and developmental "overdraft." He noted that planning frequently focuses on the needs of the preceding decade rather than future demands. Because infrastructure development spans many years, the nation suffers from persistent lag.
Despite difficult economic conditions, Oshri highlighted that the Accountant General's concerted efforts kept major tenders moving forward without delays. However, he cautioned that massive initiatives like the Gush Dan Metro require extraordinary preparation, noting that the project's vast scale might exceed the nation's immediate capacity without comprehensive regulatory and financial coordination.
Waste Management Crisis and Regulatory Hurdles
Yael Salomon of the Planning Administration pointed to waste management as one of Israel's most critical infrastructure emergencies. She warned that existing landfill capacities will be exhausted within a year, while developing a new facility takes a decade. Although most landfills are located in the southern periphery, the crisis affects the entire country.
Salomon noted that the National Licensing Authority has been expanded to streamline energy, storage, and waste projects. As a positive example, she cited the Sorek power station, which received approval this week alongside other conventional and renewable energy ventures. Furthermore, Salomon emphasized that private sector involvement in solar energy significantly accelerated development.
Public Transport and the Challenge of Congestion
Representing Dan Public Transportation, Ziv Sadeh stated that Israel lags decades behind in transport infrastructure, resulting in severe traffic congestion. Dan is actively preparing to participate in the metropolitan metro project while expanding its role in light rail and high-speed lanes.
Sadeh announced that the high-speed lane network is slated to open to high-occupancy vehicles by 2027, altering commuting habits. He stressed that a single project cannot solve the congestion crisis; instead, a fully integrated network combining metro, light rail, and rapid lanes is essential to encourage modal shift.
Water Security and Telecommunications Disparities
Addressing water sector developments, Eyal Ben David of Mekorot emphasized the dual challenge of absorbing output from new desalination plants—such as the upcoming facility in the Western Galilee—and ensuring supply reliability. He noted efforts to connect remote regions like the Golan Heights and the Arava to the national grid.
Ben David also underscored the necessity of preserving aquifer extraction capabilities, pointing out that recent algae blooms previously forced the shutdown of desalination plants, exposing the risks of relying on a single water source.
Turning to telecommunications, Erez Hasdai of Bezeq highlighted a stark contrast between fixed and mobile infrastructure. While Israel ranks among global leaders in high-speed fiber-optic connectivity, it places 67th in mobile network performance. Hasdai explained that competitive consumer pricing in the cellular market came at the cost of technological lag, emphasizing the need for stable regulatory frameworks to encourage ongoing investments.
