Three groups have been shortlisted to bid for the US$1.1bn first phase of the Tel Aviv light rail system, part of which will be built underground.

The three groups comprise: Siemens, Aecon Group, HTM of the Netherlands, Africa-Israel Investments and Israel’s Egged bus cooperative; Bombardier of Canada, RATP (Paris rail operators), Bouygues Construction and Israeli companies Property and Building and the Dan bus cooperative; and Alstom, Connex, Ashtrom, Housing and Construction Holding and Polar Investments.

Tenders will be invited in the next few months in time for work to start in 2005.

The 22km long first phase, which includes 7.5km of tunnels, runs from downtown Tel Aviv to the eastern suburbs. Three other lines totalling 47km are also planned.