Housing and Construction Holding Co. (Shikun & Binui Group)

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שיכון ובינוי בע”מ

A publicly-traded Israeli infrastructure and real estate company involved in various fields, including infrastructure, real estate development, water, energy, and concessions.

Shikun & Binui Group has significant involvement in the construction and expansion of settlements and occupation infrastructure in the occupied West Bank and East Jerusalem, as well as surrounding besieged Gaza.

The Group is also significantly involved in Israeli government plans for the industrialization and development of the Naqab (Negev) region. The plans aim to expand industrial production and military presence in the region, with the aim to increase the region’s Israeli Jewish population and their prosperity. This comes at the direct expense of the Naqab’s Palestinian population, especially those living in villages that have not been recognized by the Israeli state, thus placing them in imminent danger of forced displacement.

Services to the Israeli Ministry of Defense (IMOD):

As of 2022, the company owns 100%  of the Kiryat Hatikshuv Hatechnologit Banegev Ltd.-the Israeli military’s ICT campus “Kiryat HaTikshuv”. Shikin Binui’s project includes the construction and operation of the Israeli military ICT campus in a built-up area of more than 190,000 m2 that will house more than 6,000 soldiers. The construction cost of the project is estimated at NIS 2 billion, the construction part is set to end by 2024, and the project will be operated by the franchisee for 20 years. The project is part of the IMOD plan to relocate military technology units including the ICT Corps’ technology unit, the Air Force’s technology unit and the Southern Command headquarters, to the Naqab.

In 2020, the Group won a tender from the Israeli Ministry of Defense (IMOD), for the financing, planning, development, operation and maintenance of the Israeli military Intelligence campus “Kiryat Hamodi’in” in the Naqab for 26 years. The agreement for the establishment of the project, at an estimated cost of NIS 11 billion, was signed in July 2021. The Campus will be located near Likit junction, between Omer Industrial Park and Palestinian Bedouin village of Lakiya. The campus will spread over 2,500,000 m2 and will host the military’s Intelligence operations and house about 12,000 soldiers and officers of the Intelligence, Cyber and Technology units, as well as the headquarter units of the Intelligence Division. The population of the campus is expected to be completed in 2028.

In 2019, The Company’s fully owned subsidiary Solel Boneh Infrastructures was awarded a NIS 1.2 billion contract from the Israeli Ministry of Defense for the development and construction of an above ground and underwater technological wall armed with sensors around the besieged Gaza.

In 2018, the company’s fully owned subsidiary Solel Boneh Infrastructures won an IMOD contract for the renovation and expansion of Emanuel military base in the Naqab worth NIS 200 million.

Energy Projects in the Naqab

In 2021, the company’s fully owned subsidiary, Shikun & Binui Energy, won a government tender for the financing, development, construction and maintenance of a solar energy field near the city of Dimona in the Naqab. The project is set to be Israel’s largest solar energy field generating electricity over 3,100 Dunam of land. In March 2022, the company signed a 27 years concession agreement with the State of Israel for the project.

The company holds 50% of Ramat Hovav Power Plant Limited Partnership, the largest private power plant in Israel. The plant was purchased from Israel Electric Corporation (IEC) in December 2020 in partnership with Edeltech company, which holds the remaining 50%. The power plant is located in Neot Hovav Industrial Zone in the Naqab, home to Israel’s most dangerous and health hazardous wastes, which is located a few meters from the unrecognized Palestinian Bedouin village of Wadi Naam.  In November 2020, Ramat Hovav Power Plant Partnership signed two 20 years maintenance contracts with Siemens Energy and Ethos Energy for the supply of heavy maintenance services to the power plant. The contracts together are worth around USD139 million (137 million euro).

The company has been involved in the construction, operation and maintenance of additional solar projects in the Naqab, in Ashalim, Nevatim, Shneur Tze’elim, Sde Boker, Givolim, Hatzerim, Timna Valley, Kibbutz Urim, Moshav Nevatim, Shibolim, and Brosh. Together these farms produce over 300-MW of electricity and take over thousands of dunams of land.

In September 2020, Shikun & Binui, Edeltech Maintenance 2006 Ltd., and Edelcom Ltd. signed an agreement with the consortium of companies who own the Leviathan natural gas field NEWMED Energy (with a working interest of 45.3%), Chevron (previously “Noble Energy” at the time, with a working interest of 39.7%) and Ratio (with a working interest of 15%), for the supply for natural gas to the station. The Leviathan gas field is located in the Mediterranean; the authorization of its extraction by the Israeli state comes in violation of the Paris Protocol, the economic annex of the Oslo Accords Agreement, which calls for the establishment of a joint Development Program, to provide for joint “exploitation of oil and gas for industrial purposes.” Israel’s blockage of Palestinian’s ability to develop their natural resources leads to the de-development of the Palestinian economy.

Solel Boneh Infrastructures-Construction on Occupied Land

Jerusalem Light Rail

In 2019, Moriah Jerusalem Development Corporation contracted Solel Boneh Infrastructures for construction work on the route of the Green Line of the Jerusalem Light Rail (JRL). The JLR connects large Israeli settlement blocs in occupied East Jerusalem with the western part of the city, expropriating occupied Palestinian land and promoting increased territorial contiguity for settlements alongside growing territorial fragmentation for East Jerusalem’s Palestinian neighborhoods. The JLR Green Line, currently under construction, will connect the settlement neighborhoods of Gilo and French Hill through the city center. For more on the Jerusalem Light Rail see Infrastructures of Dispossession and Control Transport Development in East Jerusalem.2

In 2019, Moriyah Jerusalem Development Corporation awarded Solel Boneh Infrastructures a contract for the construction of the Tunnel Road, a section of Route 60, which connects the southern part of the Occupied West Bank to Jerusalem. The project includes a 12 km road connecting Gilo settlement neighborhood in occupied East Jerusalem and the settlement of Elazar. The construction costs are estimated at NIS 1 billion and the construction work is set to end in 2025. The project includes the construction of two new tunnels, the construction of a new bridge, the addition of two traffic lanes in every direction, and the establishment of a public transportation lane. The project also includes the restoration of the existing tunnels and system upgrade. The road passes directly under the Palestinian town of Beit Jala and provides access to Jerusalem without coming in view of surrounding Palestinian villages and neighborhoods, connecting Jerusalem to the settlements of Gush Etzion area in the occupied West Bank.

Furthermore, Solel Boneh was involved in settlement expansion through carrying out the construction of settlements including the settlements of Modi’in Illit in 1974, Ma’ale Adumim in 1975, and Ariel in 1981 in the occupied West Bank, and the settlement neighborhoods of Har Homa in 1990 in occupied East Jerusalem. In addition, Solel Boneh, in cooperation with Efgad Engineering and Construction Works, built 126 housing units and a commercial center in the settlement neighborhood of Ramat Shlomo in occupied East Jerusalem.

The company has also carried out the construction of Road 90, which was finalized in 2003, which crosses through the occupied West Bank, including the Jordan Valley region.

Services to the Israeli Police:

Shikun & Binui holds 50% of Policity Ltd., the franchisee operating the Israeli Police national training center, under a PPP/PFI agreement from 2011 for the establishment of the training center and the provision of operation, maintenance and training services for a period of 25 years, for about NIS 600 million. In addition, the company owns 25% of the venture that provides the training services at the center. The remaining shares of Policity Ltd. are held by G1 Secure Solutions (25%) and G4S Holdings (B) B.V (25%).

The center was built by Solel Boneh infrastructures, in 2014, featuring 38 buildings, on approximately 57 acres and a built area of 62,000 m². The center includes residential buildings for cadets and staff, office buildings, a cafeteria, public buildings, an advanced training complex, shooting ranges, an athletics stadium and sports equipment.

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