Israel Land Authority Struggles With Leadership, High Costs And E1 Tenders
The Israel Land Authority faces leadership vacancies and a failed tender in Tzipor Midbar due to soaring development costs, while political battles stall the strategic E1 construction project in Ma'ale Adumim ahead of elections.
The Israel Land Authority (ILA) is currently struggling to find a permanent director following the departure of Yanki Kvint last December to the private sector. Meanwhile, the marketing of land for high-density construction has dropped, and Sigal Gabai, head of the ILA business division, recently announced that land marketing for discounted apartments could rise to about half of all marketing efforts.
The Political Battle Over E1 in Ma'ale Adumim
Recently, the state attempted to market land in Ma'ale Adumim, a highly sensitive area regarding construction ahead of the upcoming elections. MK Tally Gotliv recently revealed that Attorney General Gali Baharav-Miara opposed construction in the E1 compound due to the proximity of the elections. Gotliv claimed that this was an old plan and there should have been no prevention of construction in the area.
"The Attorney General instructed to postpone the construction procedure in the compound until after the elections, fearing further delays in government formation."
However, after the Ma'ale Adumim municipality petitioned the High Court of Justice, the ILA tender was reopened for contractor bids, with the Attorney General requesting not to announce the winner until after the elections. The E1 site is located outside the Green Line in Area C of the West Bank, and construction there would create an Israeli territorial continuity between Jerusalem and Ma'ale Adumim.
Tender Failure in Tzipor Midbar
Regarding the Tzipor Midbar neighborhood, expectations were that lands in the area would be marketed quickly, but a major tender for 183 housing units failed completely this week as no contractors submitted bids. A local contractor told Ice: "Why should I bid when development expenses stand at 100 million shekels? Look at the land price and understand why no contractor touches their tenders."
A review of the tender reveals high costs: development expenses stand at 99.5 million shekels, and the land price was estimated by ILA appraisers at approximately 99 million shekels. The minimum price was set at 12.2 million shekels, meaning the tender could have been won for about 112 million shekels excluding VAT. Consequently, the land cost per housing unit exceeded 600,000 shekels, compared to 300,000-400,000 shekels typically seen in the periphery, leading contractors to bypass the offer amid high interest rates and rising commodity costs.
