The light rail project in Tel Aviv has been canceled due to a dispute in the financing of the plan.The company which received the deal to build the railway, MTS, rejected a compromise proposal over the project's funding.The franchisee was the MTS consortium, comprising ASfrica Israel, Siemens, Egged, CCECC of China, and Soares Da Costa of Portugal. The group leader is Africa Israel Investments Ltd, which has a 20% stake in the $US2.6 billion project.Funding was to be provided by a consortium of foreign financiers headed by German banks KfW and BayernLB. In terms of a deal agreed by both sides, MTS was to provide the government with early proof it can secure funding for the project.Treasury officials accused the company of foot-dragging, and managing negotiations in bad faith since it knew that it would be unable to meet its obligations.This comes after a long dispute between government and concessionaire. See the whole story following this link.Take care!Follow us on twitter!Take care!