Congestion fees in Tel Aviv to be implemented in 2028 despite Transportation Minister opposition

ByUDI ETZIONAUGUST 1, 2026 09:18Partner Group has been selected to provide the communications infrastructure for the congestion charge project in the Greater Tel Aviv metropolitan area, the company announced on Thursday. Partner also said the project’s official launch date had been postponed from 2027 to 2028.The project, awarded to Electra Group following a government tender, is intended to reduce traffic congestion in the Greater Tel Aviv area and encourage the use of public transportation.It will use a smart payment system to charge vehicles entering high-demand areas based on the time of day and location.Commuters to pay more during rush hourThe Greater Tel Aviv area will be divided into three rings surrounding Tel Aviv: an outer ring, a middle ring, and an inner ring, with fees varying throughout the day.During the morning rush hour, from 6:30 a.m. to 10 a.m., drivers will be charged NIS 10 for crossing each ring. During the afternoon rush hour, from 3 p.m. to 7 p.m., the charge will be reduced to NIS 2.5 for the outer ring and NIS 5 for the middle and inner rings.Traffic on the Ayalon Highway in Tel Aviv near a newly opened section of the fast lane, April 12, 2026. (credit: AVSHALOM SASSONI/FLASH90)The daily charge will be capped at NIS 37.5. Taxis will pay 50% of the charge with no daily cap, while trucks will pay twice the standard rate. Motorcycles and vehicles displaying disabled parking permits will be fully exempt.The project is expected to generate NIS 1.4 billion in annual revenue for the state. Of that amount, NIS 700 million will be allocated to expanding public transportation to provide a better alternative to private vehicles.The remaining revenue is expected to help finance the Metro project, which is projected to cost more than NIS 175 billion and is intended to provide the fastest and most significant alternative to the region’s traffic congestion.The congestion charge project is moving forward despite continued opposition from Transportation Minister Miri Regev, although it has already been approved by the Knesset and the government.After the Transportation Ministry delayed publishing the tenders required to implement the project, the Finance Ministry issued them instead.Despite support from transportation professionals, the urgent need to address the transportation crisis in the Greater Tel Aviv area and the success of similar projects in Singapore, London and New York in reducing congestion, the project remains unpopular with the public.Launch could be postponed until 2028The final decision on the launch date will be made by the next government. The launch could be postponed until the end of 2028, after the planned opening of the light rail’s Purple Line, which will run from the Yehud area to Tel Aviv, and the first phase of the Green Line, which will run from Rishon Lezion to the Levinsky area of Tel Aviv.The congestion charges will be collected through 220 entry gates, for which Partner will provide the communications system.The system will receive vehicle identification data, cross-reference it with databases and issue charges based on the applicable rates.This will require a fast, secure and reliable communications infrastructure capable of operating around the clock for many years.The total operating period is expected to last at least two decades, throughout which Partner will provide support. Partner is expected to receive tens of millions of shekels in revenue over that period.Electra Ltd., led by CEO Itamar Deutscher, won the tender issued by an interministerial committee to design, build, operate and maintain the entire project.The company is expected to receive approximately NIS 400 million for establishing the project, as well as an additional estimated NIS 850 million over the concession period.Avi Dvora, vice president of Partner’s business division, said, “We are proud to take part in a national project of strategic importance to the Israeli economy and thank Electra for expressing significant confidence in our capabilities. We bring to the project professional knowledge and experience accumulated over many years of operating critical communications systems for Israel’s largest organizations, alongside our commitment to operational excellence.”Partner selected to provide infrastructure for Greater Tel Aviv congestion charge projectPartner was selected by Electra to provide the communications infrastructure for a project that will charge vehicles entering the Greater Tel Aviv area up to NIS 37.5 a day. The goal is to encourage greater use of public transportation.Partner was selected by Electra to provide the communications infrastructure for a project that will charge vehicles entering the Greater Tel Aviv area up to NIS 37.5 a day, encouraging commuters to use public transportation rather than add more cars to the increasingly congested roads in central Israel.Follow us on Google