Client updates / Tenders and Projects

The Industrial Cooperation Authority at Israel’s Ministry of Economy recently announced that it had blacklisted the Chinese company DAQO, which won a tender for the supply of components to the Israel Electric Corporation, because it failed to fulfill its reciprocal procurement obligation with Israel.

Israel’s various Mandatory Tender Regulations contain provisions enabling public bodies to deviate from the tender obligation during states of emergency in order to facilitate urgent, efficient procurement.

When competing entities join forces to submit a tender offer, it reduces the overall number of entities competing for a tender. Reducing the number of competing entities may increase the market power of those participating entities against the tender holder and enable them to make less attractive offers.

In light of the rise of investments in transportation projects, new guidelines were issued for infrastructure companies operating on behalf of the Ministry of Transport, requesting such companies adopt binding standards on several issues regarding contracts and tenders.