The Industrial Cooperation Authority (ICA) of the Ministry of Industry, Trade and Labor has told the Haifa Port Company that it must include a specific demand to implement local sub-contracting of at least 20% of the value of the transaction in purchase tenders for STS bridge cranes and RMG gate band cranes for Carmel Port. Haifa Port must publish this order without delay in the tender documents and transmit it to all those who have purchased tenders.

ICA’s Deputy Director General informed Haifa Port that failure to publish this demand would represent a violation of protocol, which would require the ICA to take steps, which may delay the continuation of the tender process.

ICA’s approval for ongoing contacts with the tender winner will be given only after examination of the fulfillment plans which will be submitted by the winning bidder of the tender and the local sub-contractors included in the program.

The scope of the transactions for the purchase of lifting cranes for Carmel Port amounts to about $100 million Euros. The volume of local production within the framework of fulfilling the obligation to make contact with local subcontractors will amount to about $40 million.

ICA’s Deputy Director General pointed out that in the purchase of all port cranes made recently by Ashdod and Haifa ports, the overseas suppliers made commitments to implement local sub-contracting as required by protocol.

More than this, in a recent transaction by Haifa Port, the overseas supplier agreed to fulfill all sub-contracting commitments including manufacturing the construction, electricity works and equipment and assembly of the cranes, air-conditioning, on-site assembly and installation of the cranes all amounting to 40% of the value of the contract, and significantly higher than the sum committed to by the supplier.