Gov't Cos Authority recommends splitting NTA

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The Government Companies Authority recommends significant restructuring of NTA — Metropolitan Mass Transit System Ltd. It proposes the formation of a special subsidiary to be responsible for operating and maintaining mass transit systems in Gush Dan (Greater Tel Aviv), while NTA itself focuses on development and construction of infrastructure projects.

The recommendation was given as part of a professional opinion presented to the Ministry of Finance and the Ministry of Transport, following a government decision in 2023 on the organizational structure of large transport projects, headed by the Metro underground railway project in Gush Dan. The current study examined three options, among them forming a completely separate government company and transferring operations to an existing government company, but the Government Companies Authority found that setting up a subsidiary was the most efficient solution. At present, NTA covers both construction and operation of transport projects.

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According to the opinion, the subsidiary model will facilitate separation between the construction and operation stages, while preserving professional know-how within the organization. The Authority also states that it should improve service to passengers, facilitate more flexible management of operations, and reduce NTA’s management burden, as it deals with huge infrastructure projects.

At the same time, the Authority points out possible disadvantages of the subsidiary model, among them dependence of the subsidiary on the parent company’s policy, and risks of friction between the two companies. The opinion states, however, that these risks can be mitigated through liaison mechanisms, agreements between the companies, and clear demarcation of work interfaces.

If the recommendation is implemented, NTA will continue to lead construction of infrastructure projects, headed by the Metro, which is estimated to cost NIS 150 billion. Formation of the subsidiary requires a government decision under the Government Companies Law.

Published by Globes, Israel business news — en.globes.co.il — on April 16, 2026.