China to build train track to Eilat

Within a month, Israel will be signing an agreement with China to build a train track to Eilat. Beijing will build the 170-kilometer double line (one track in each direction ) from Nahal Zin to Eilat. The cost is estimated between NIS 6 billion to NIS 10 billion. The government approved a track to Eilat as part of its 10-year infrastructure plan. But it didn't budget money for the project. A feasibility test conducted in the past found it would not be economical: Neither passenger nor cargo traffic could justify the cost of the line to the Red Sea. The Transportation Ministry argues that the train line would facilitate exports from the east to Europe, by passing the Suez Canal. The Finance Ministry is appalled by the cost. Treasury officials say Chinese financing isn't needed, but rather state guarantees would be an issue. Nor, they say, is there any way to bypass statutory tenders, they said.