Shafir Engineering and Oryan will operate supply centers for the IDF

Report on the acquisition of Shafir Engineering and Oryan companies in the planning, construction and operation of NIS 5.5 billion supply centers for the IDF, sent their shares to sharp increases - which reached Shafir in the afternoon to 8% -9% and ranged in the range of 30 % -40%.
The Ministry of Defense today updated the companies' decision on its tender committee, to choose their joint bid, through a dedicated company (SPC), "as the winner of a tender for a contract for financing, planning, construction, operation and maintenance (PPP) of the Merah Project - Unified Supply Center" .
The project includes three IDF logistics centers across the country, the duration of which is estimated to be about 5 years, in accordance with milestones set in the concession agreement, whose total period, including the operation, is spread over 26 years from the date of the concession.
Shafir and Orain stated in a statement on the subject that the construction grant for the project is NIS 1.25 billion, which will be paid to the partnership "in accordance with milestones throughout the construction period", in addition to fixed and variable payments, which will total a total of NIS 5.5 billion.
We also stated that "the franchisee's win over the project is subject to completion of the project's financial closure within a period of up to 12 months from the date of signing the franchise agreement." In this context, the partnership, through which the dedicated company they established, will be required to "enter into binding agreements for financing required for the construction and operation of the project."
The partnership is now required to provide a NIS 60 million pre-construction guarantee, which will be replaced by a NIS 130 million construction guarantee "upon receipt of work commencement from the commissioner", which will be reduced in the future "in accordance with the progress of the works and obtaining ready-to-operate approval".
Shapir's share in partnership with Orian, through a subsidiary, is 60%, and the balance is held by the logistics company controlled by CEO Chen Lamden.