In the coming years, Israel is expected to invest substantial sums in infrastructure projects, primarily in the fields of public transportation, energy, water, environment, and logistics. These investments stem from rapid population growth and the need to close infrastructure gaps that have accumulated over many years.
For an up-to-date overview, it is recommended to review the government’s multi-year program, “Infrastructure for Growth 2025.” This program includes projects with budgets of NIS 100 million and above, whose implementation has begun or is expected to begin between 2023 and 2027. The objective of these projects is to strengthen the Israeli economy and support long-term growth.
The program encompasses numerous national projects in transportation, energy, water, and environmental infrastructure, and reflects a shift in government policy: infrastructure development is now viewed as a key engine of economic growth, rather than merely a response to immediate needs. These projects are expected to have a direct impact on developers, contractors, industrial companies, technology providers, and international companies operating in Israel.
At the same time, it should be noted that the war has affected some of the projects, both in terms of budgets and timelines. In certain cases, delays, budgetary changes, or shifts in priorities have been recorded, partly due to the diversion of resources to security-related and urgent needs.
This situation creates uncertainty regarding the execution timelines of some projects and requires the involved parties to operate flexibly and manage risks cautiously. Nevertheless, these adjustments are considered temporary and do not reflect a fundamental change in overall policy.
The general trend remains clear: the State of Israel continues to promote infrastructure investments on an unprecedented scale, based on the understanding that strong civil infrastructure is essential for economic recovery, continuity of economic activity, and long-term development. Even in periods of security challenges, infrastructure is viewed as a central component of national stability and the economy’s ability to cope with future crises.
Below are several notable examples of major transportation projects expected in Israel in the coming years:
1. Metropolitan Transportation: The Tel Aviv Metro and Light Rail
The Tel Aviv Metro project (M1, M2, M3) is the largest public transportation project ever undertaken in Israel and one of the most complex and costly infrastructure projects in the country’s history. Its objective is to establish an extensive underground rail system to meet the transportation needs of the Tel Aviv metropolitan area for decades to come.
Line M1 is planned as a north–south underground line approximately 85 kilometers long, connecting major metropolitan cities including Ra’anana, Herzliya, Tel Aviv, Rishon LeZion, and Rehovot. The total investment is estimated at approximately NIS 150 billion, with construction currently expected to begin around 2026.
Line M2 is planned as an east–west line approximately 25 kilometers long. It will connect key areas within the metropolitan region and provide transversal connections to existing and planned lines, thereby improving accessibility and connectivity across the region.
In parallel with the Metro project, progress continues on the Tel Aviv light rail projects. The Red Line has already been completed and is operational, while the Green Line and Purple Line are at various stages of construction.
Together, these projects are expected to significantly transform public transportation in central Israel and to impact mobility patterns, urban development, and economic activity in the region.
2. Jerusalem: Expansion of the Light Rail Network
In Jerusalem, major projects are underway to expand the light rail network. These include the JNET project, which encompasses the extension of the Red Line and the construction of the Green Line. In addition, the Blue Line is also being advanced and is defined in planning documents as another key project.
3. Heavy Rail: Capacity, Electrification, and Connectivity
To enable advanced and efficient operation of the national rail network, the program includes major projects in heavy rail infrastructure, including:
a. The Fourth Track in the Ayalon Corridor – Expansion of the most sensitive and congested rail corridor in the country, which constitutes a major bottleneck in the national rail system. This project is expected to significantly increase train frequency, reduce travel times, and improve system resilience during peak hours.
b. Rail Electrification – Nationwide transition to electric propulsion, including infrastructure upgrades, adaptation of rolling stock, and improvements in operational and control capabilities. This move is expected to increase system capacity, improve reliability and punctuality, reduce long-term operating costs, and lower air pollution and greenhouse gas emissions.
In addition, these projects provide the foundation for strengthening connections between the heavy rail network and complementary transportation systems, including suburban rail, light rail, and future metro systems, contributing to the creation of an integrated, efficient, and sustainable national transportation network.
4. Northern Israel: Haifa–Nazareth Light Rail (“Nofit”)
One of the most prominent projects outside the Tel Aviv metropolitan area is the Haifa–Nazareth “Nofit” light rail line, extending approximately 41 kilometers and including about 20 stations. The line, currently defined as a project under construction, is intended to connect the Haifa metropolitan area with the Nazareth region and the communities along the route, significantly improving accessibility and connectivity in northern Israel.
The project is expected to provide an efficient alternative to private car use, reduce congestion on intercity roads, and support economic, employment, and spatial development in the north. It also aligns with a broader strategy to develop high-capacity public transportation systems in peripheral regions, strengthening connections between employment centers, education, and public services.
5. Congestion Policy: Congestion Charges in the Tel Aviv Metropolitan Area
Beyond physical infrastructure development, a congestion pricing policy is being advanced in the Tel Aviv metropolitan area. According to economic reports, this initiative is currently progressing through tendering and regulatory stages, with implementation targeted around 2027, subject to government decisions, regulatory approvals, and adherence to established timelines.
6. Aviation: Expansion of Ben Gurion Airport and Capacity Upgrades
The program includes a major project to expand infrastructure at Ben Gurion Airport, involving the planning and construction of additional terminal facilities. These include a ground terminal adjacent to Terminal 3 and the construction of an additional concourse, with an estimated cost of approximately NIS 2.28 billion. The project is in advanced planning stages, with tenders and construction expected to commence in the coming years.
In addition, international stakeholders have pointed to the potential development of an additional international airport, or multiple additional airports, as a national PPP project. However, the feasibility and policy direction of such initiatives may change depending on government decisions and planning considerations.
7. Water: Desalination and Conveyance Facilities
Israel continues to strengthen water independence through desalination plants and conveyance infrastructure:
• Sorek B – A desalination facility explicitly noted as delayed due to the war, with an estimated cost of approximately NIS 1.7 billion.
• Ashkelon 2027 – An additional desalination facility of similar scale (also approximately NIS 1.7 billion in the program), with tendering and construction planned for the coming years.
• Western Galilee – Integration of a desalination facility with connection and storage infrastructure as part of a broader development plan for northern Israel.
8. Energy: Natural Gas, Coal-to-Gas Conversions, Solar Energy, and Storage
Natural Gas and Transmission Infrastructure
The program includes large-scale natural gas transmission projects, involving new pipelines and expansion of existing infrastructure, aimed at increasing capacity, strengthening supply reliability, and supporting the conversion of power generation units from coal to gas:
• Ramat Hovav–Nitzana – Construction of an additional pipeline defined as an export route to Egypt, including a compression station.
• Offshore Ashdod–Ashkelon Pipeline – A project intended to increase export capacity and connect generating units at the Rotenberg Power Station being converted from coal to gas. It is noted that works were affected by the war, leading to updated timelines.
• Offshore Hadera Pipeline – A dedicated pipeline connecting the Orot Rabin Power Station, as part of the conversion of coal-fired units (Units 5–6) to natural gas, with status updates relating to construction progress and operational stoppages.
Transition to Renewable Energy and Storage
Alongside the development of gas infrastructure, the government is promoting a gradual transition to renewable energy, with a target of achieving 30% electricity generation from renewable sources by 2030. According to reports from 2025, approximately 15% of electricity generation in Israel comes from renewable sources—primarily solar energy—while about 70% is generated from natural gas.
Policy efforts focus on expanding distributed electricity generation, including rooftop solar installations, alongside the promotion of supporting infrastructure. In this context, tenders and regulatory frameworks have been reported for the establishment of large-scale electricity storage systems, considered a critical component for the extensive and stable integration of solar energy into the power grid.
9. Environment and Waste: Waste-to-Energy Facilities
A government ministry reported the submission of bids in a tender for the construction of a waste sorting and waste-to-energy facility in Neot Hovav, regarded as the first project of its kind in Israel on this scale. The project forms part of a broader policy aimed at promoting advanced waste treatment solutions, alongside the establishment of national targets to expand recycling and waste treatment infrastructure and reduce landfill disposal by 2030.
10. Logistics and Ports: Expansion of Trade Capacity
The Haifa Bay Port is presented as a key capacity addition intended to support the growth of Israel’s trade volumes and adapt the port sector to larger vessels. The project is part of a broader effort to strengthen supply chains, improve operational efficiency, and expand logistics infrastructure at the national level.
Conclusion
In the coming years, a significant “wave” of implementation is expected, focusing primarily on large-scale urban transportation projects, alongside strengthening water sector independence, expanding gas infrastructure and the electricity grid, and advancing new initiatives in environmental management and congestion mitigation. At the same time, some projects remain subject to uncertainty and may be affected by changes in timelines, due to budgetary and regulatory constraints as well as the implications of the security situation.
