Government plan: strategic work for the development of Haifa Bay until 2029

The Prime Minister's Office published this morning the strategic work plan for the development of Haifa Bay. The target set for the cessation of petrochemical industry activity in the Gulf is 2029, and the publication of the plan aims to establish interim targets for the preparation of the energy sector by then.
The plan will make it possible to change the designation of the land in favor of employment, residences, logistics, and open spaces. In this framework, the planning and development of approximately 130,000 housing units, 12 million square meters for employment and commerce, and 5.8 million square meters for a metropolitan park along the Kishon are expected. A key element for the success of the program is the evacuation of the Bezan refineries and the distillate terminal from the Gulf while moving to the import and storage of fuel distillates and LPG (condensed hydrocarbon gas). The main responsibility for complying with the plan rests with the Ministry of Energy.
The plan for the evacuation of Haifa Bay was published following the recommendations of the committee of CEOs on the development of the bay, led by the head of the National Economic Council, Prof. Avi Simhon. Following this recommendation, a dedicated administration for the development of the bay was established, which was designed to promote the plan in the government ministries. The plan includes, among other things, the construction of tracks for high-speed trains between Tel Aviv to Haifa Bay, a metropolitan park along the Kishon River and a new hospital in Kiryat Ata.
The main focus in the coming years, and the key to success, is in preparing the energy sector for the cessation of the petrochemical industry's activity in Haifa Bay. This preparation includes the establishment and conversion of infrastructure for the import, transmission, storage and distribution of petroleum distillates, gasoline, diesel and jet fuel, as well as a response to the import and storage of bitumen (raw material for the preparation of asphalt) and the treatment of condensate from the Leviathan gas reservoir. Only after the completion of the construction and conversion of the energy infrastructure, will the country be ready to stop the operation of the Bezan refinery in Haifa Bay.
The chairman of the steering committee of the strategic plan, Prof. Avi Simhon, who also serves as the head of the National Economic Council in the Prime Minister's Office, claims that "the plan we formulated will lead to the establishment of a large and strong metropolis in the north of the country, which in the future will be able to equal the pulling power of Gush Dan. This will change the image of the country and will affect the development of the entire north. We are determined to lead this move as quickly and efficiently as possible, and are working together with all the government ministries that are partners in the program so that we can even advance the timetables for preparing the energy sector."
Yuval Edmon, head of the administration for the development of Haifa Bay and deputy head of the National Economic Council in the Prime Minister's Office, said: "Since the establishment of the steering committee and the administration, we have been working on turning the vision of the development of the bay into an operative, detailed and coordinated plan for implementation in the coming years.
"At the same time as the intensive work to formulate the plan together with all the partners, we have already actually started to carry it out, all of us together. The vast majority of the work packages have already started, with an emphasis on the establishment of the energy infrastructures that will allow the cessation of the petrochemical industry's activity in the Gulf. Projects have been budgeted, tender committees have been established, Statutory programs are advanced - and all the ministries are working together to meet the schedules we set for ourselves."
As part of the plan, it was determined that by the end of 2024, the Ministry of Finance should reach an agreement with Bezan to compensate the company for clearing the area. Negotiations are currently underway, but now for the first time, the target date for its completion has been announced.
There is almost no government ministry that is not included in the program, which includes 100 different projects, called "work packages", and which include more than 500 tasks that are divided between the ministries and the various implementing bodies, including a clear division of responsibilities, timetables, and milestones for each task. According to the plan, the preparation of the energy sector will be completed during 2029, two to three years before the target set by the committee of CEOs and the government's decision.
The preparation of the energy sector for the cessation of the petrochemical industry's activity in Haifa Bay requires the establishment and conversion of the existing infrastructures in favor of the new goals. In order to meet the demand for the old energy products - oil distillates, gasoline, diesel fuel, jet fuel, LPG, and bitumen - which with the introduction of the electric vehicle and electric gas will decline and disappear, the government-approved state budget for 2023-2024 the construction of some of the energy infrastructure. The key here is The Ministry of Energy, which bears a great deal of responsibility for the success of the program.