Israel Rolls Out Port Privatization Program
The Israeli Government will privatize its two main ports, Ashdod and Haifa in 2015 and 2016 respectively. The plans were proposed by the Finance Ministry and have been approved by the Prime Minister.
Finance Minister Yair Lapid said: “This is another step in stopping the politicization of government companies and reducing corruption [in the companies].”
The Finance Ministry said the ports would be sold in a private sale, not on the Tel Aviv Stock Exchange, either in stages or all at one time.
Ori Yogev, who is officially the head of the Government Companies Authority, a unit of the finance ministry said that would not stand in the way of the government floating up to 49 percent of the Ashdod port - one of two main seaports on the Mediterranean coast - on the Tel Aviv Stock Exchange (TASE) in November or December. The controlling stake will be sold in 2020.
"Part of the decision is to develop the TASE and develop the local market even if in some cases we can get better value outside of Israel," Yogev said.
The ports privatizations are part of a wider agenda of privatizing or part-privatizing state-owned companies including utility companies, railways and arms companies which is likely to raise funds for the Government.
In 2015, Israel will seek to sell a minority stake in Israel Natural Gas Lines and the state postal company, as well as privatize Israel Military Industries (IMI) and several smaller companies.
