RESTRICTED  WORLD TRADE  
ORGANIZATION  GPA/MOD/ISR/2 
7 October 2005 
 (05-4518) 
Committee on Government Procurement Original:   English 
   
 
PROPOSED MODIFICATIONS TO APPENDIX I OF ISRAEL  
 
Communication from Israel Pursuant to Article XXIV:6(a)
1 of the GPA  
 
 
  The following communication, dated 26 Septem ber 2005, from the Delegation of Israel is 
being circulated to the Parties to the Agreement on Government Procurement.  
_______________ 
 
  
1. Pursuant to Article XXIV:6(a) of the Ag reement on Government Pr ocurement (GPA), we 
hereby wish to notify the following proposed modifications to Appendix I of the GPA: 
 
 - Attachment A details the explanations  for the various proposed modifications. 
  - As a result of restructuring of governme nt operations, government  organizations were 
either renamed, renamed and combined, or  their functions were moved to another 
government organization, as reflected in the proposed modifications marked in 
Attachment B.  Attachment B also reflect s organizations which have been dissolved 
or have completed their mandate and ende d.  All proposed modifications are in 
accordance with the provisions of the GPA. 
  - Attachment C contains the revised pag es of GPA Annexes 1, 2 and 3 to Appendix I 
for Israel.
2 
 2. Please note that these changes affect in no way the balance of rights and obligations nor do 
they alter the level of mutually agreed coverage provided in the GPA.  
                                                     
 
 1 Article XXIV:6(a) reads as follows:  Rectifications or  Modifications   (a) Rectifications, transfers of an entity 
from one Annex to another or, in exceptional cases, other modifi cations relating to Appendices I through IV shall be notified 
to the Committee, along with information as to the likely cons equences of the change for the mutually agreed coverage 
provided in this Agreement.  If the rectifications, transfers or  other modifications are of a pur ely formal or minor nature, th ey 
shall become effective provided there is no objection within 30 days.  In other case s, the Chairman of the Committee shall 
promptly convene a meeting of the Committee.  The Committee shall consider the proposal and any claim for compensatory 
adjustments, with a view to maintaini ng a balance of rights and obligations and a comparable level of mutually agreed 
coverage provided in this Agreement prior to such notification.   In the event of agreement not being reached, the matter may 
be pursued in accordance with the provisions contained in Article XXII. 
2 Attachments B and C are in English only. GPA/MOD/ISR/2 
Page 2  
 
 
ATTACHMENT A 
 
EXPLANATIONS OF THE PROPOSED MODIFICATIONS TO ANNEX 1 OF ISRAEL 
  
  Ministry of Agriculture
 - In accordance with the Government's Decision of 20 August 1995 
(No. 6015), the competency of the Ministry of Agriculture was broadened to include the economic 
and social development of rural areas in accord ance with the special need s of those areas.  The 
Ministry's name was changed to Ministry of Agri culture and Rural Development in order to reflect 
this decision.   Ministry of Communications and Culture
 - At the time that Annex 1 was originally reported, 
the culture portfolio was temporarily transferred to  the Minister of Communications.  The Ministry's 
name has reverted back to the Ministry of Comm unications since it is no longer responsible for the 
culture portfolio.   Ministry of Economics and Planning
 - As a result of budgetary constraints and pursuant to 
Government Decision No. 38, dated 26 November 19 95, the Ministry of Economics and Planning was 
abolished.  The functions of the Ministry were dispersed among several Ministries all covered by the 
GPA. 
  Ministry of Education
 - In accordance with the Prime Minister's Decision, dated 
26 February 2003 (No. 127), the Ministry of Education was reorganized such that its competency was broadened to include sports and cu lture and consequently it's name was changed to the Ministry of 
Education, Culture and Sport.
 
 
 Ministry of Energy and Infrast ructure excluding Fuel Authority  - The name of the Ministry, 
from its inception in 1977 until 1996, was the Minist ry of Energy and Infrastructure.  The main 
component of the Ministry was energy (electricity, petroleum exploration, Fuel Authority, energy conservation, funding of research and development in the relevant areas, etc.).  The "Infrastructure" 
component was the Earth Sciences Authority.  (G eological and Geophysical Institutes, Oceans and 
Limnological Institute).   In 1996, as a result of a Prime Minister's Decision which was notified to the Government on 7 July 1996, the functions of the Ministry were expanded.  In addition to the existing energy and 
infrastructure mandate, a number of additional infrastructure elements were added.  As a result, it was 
decided to change the name of the Ministry to the Ministry of National Infrastructures. 
  Today, in addition to the afore-mentioned ener gy and infrastructure components, the Ministry 
is also responsible for the Water Commission, the Sewage Authority, the Sewage Authority and the 
Mines and Quarries Unit. 
 
 Civil Service Commissioner
 - Due to a translation error, the name of the office has been 
corrected to Civil Service Commission.   Ministry of Industry and Trade
 - Pursuant to Government Decision No. 1 of 3 March 2003, 
the functions of the Ministry of Labour and Social  Affairs were split such that labour issues were 
transferred to the Ministry of Industry and Trade.  As a result of this reorganization step, the Ministry 
of Industry and Trade was renamed the Mi nistry of Industry, Trade and Labour.  
 GPA/MOD/ISR/2 
Page 3 
 
 
 Ministry of Labour and Social Affairs  - Pursuant to Government Decision No. 1 of 
3 March 2003, the functions of the Ministry of La bour and Social Affairs were split such that the 
labour issues were transferred to the Ministry of Indust ry and Trade.  As a result of this reorganization 
step, the Ministry was renamed the Ministry of Social Affairs.  
 Israel Productivity Institute
 - The Institute which was disso lved in 1999 was a unit in the 
Ministry of Labour and Social Affairs.   Ministry of Religious Affairs
 - Pursuant to a Government D ecision, dated 8 October 2003, the 
Ministry was abolished as of 31 December 2003 due to budgetary considerations.  The functions of 
the Ministry were dispersed among several Ministries, all covered by the GPA. 
  The State Controller's Office
 - In 1997, the name was change d to the Office of the State 
Comptroller and Ombudsman to more accurately refl ect in English the functions of the Office. 
 
 
EXPLANATION OF THE PROPOSED MODIFICATION TO ANNEX 2 OF ISRAEL 
 
  The company for economy and management of the Center of Local Government
 - Due to a 
translation error, the name of th e entity has been corrected to Lo cal Government Economic Services 
Ltd. 
  
EXPLANATIONS OF THE PROPOSED MODIFICATIONS TO ANNEX 3 OF ISRAEL 
  Israel Ports and Railways Authority
 – On 29 December 2002, the law of the Ports and 
Railways Authority was amended (Amendment No. 11) .  The Amendment separated the train activity 
from the authority's activity and turned the train fro m section in Israel Ports and Railways Authority 
to a governmental company.   Furthermore, the assets and employees of the tr ain were transferred to the new governmental 
company.  On 1 July 2003, the day Amendment No. 11 entered into force, Israel Railways Limited 
began operating as a governmental company.   In accordance with legislation enacted duri ng July 2004, the organizational reform of the 
Israeli port system went into effect on 17 February 2005. 
 
 As mandated by the July 2004 legislation, the Israel Ports Authority ceased operations on 
16 February.  It has been replaced by four government-owned companies:  Israel Ports Development 
and Assets Company Ltd. , Ashdod Port Company Ltd. , Haifa Port Company Ltd.  and Eilat 
Port Company Ltd . 
 
 Israel Ports Development and Assets Company Ltd . will serve as landlord of the port real 
estate in Haifa, Ashdod and Eilat and will be r esponsible for development and leasing of those 
properties both for traditional maritime terminal us es, as well as related distribution and logistics 
activities.  
 The three port operating companies, Ashdod Port Company Ltd ., Haifa Port Company 
Ltd. and Eilat Port Company Ltd. , are mandated to operate the port facilities that have been leased 
to them for a 49-year period.  Ownership of existing cranes and handling equipment has been transferred to the three companies.  They will be required to maintain both the port property, as well as the equipment that has transferred to them. 
 GPA/MOD/ISR/2 
Page 4  
 
  Postal Authority
 - Due to a translation error, the name of  the entity has been corrected to Israel 
Postal Authority.   Israel Electricity Company
 – Due to a translation error, the name of the entity has been 
corrected to The Israel Electric Corp. Ltd. 
  Mekoroth Water Resources Ltd
 - Due to a translation error, the name of the entity has been 
corrected to Mekorot Water Co. Ltd.  
 Israel Standards Institute
 - Due to a translation error, the na me of the entity has been corrected 
to The Standards Institution of Israel.   National Insurance Institute
 - Due to a translation error, the name of the entity has been 
corrected to National Insurance Institute of Israel. 
 
 GPA/MOD/ISR/2 
Page 5 
 
APPENDIX I ISRAEL  ANNEX 1 Page 1/2
 
1 March  2000 (WT/Let/ 330) ATTACHMENT B 
 
ISRAEL  
 
(Authentic in the English language only) 
  
ANNEX 1 
 
Central Government Entities wh ich Procure in Accordance 
With the Provisions of this Agreement 
 
 
Supplies  Threshold : 130,000 SDR 
 Services   (specified in Annex 4)  Threshold : 130,000 SDR 
 Construction   (specified in Annex 5)  Threshold : 8,500,000 SDR 
 
 List of Entities : 
 House of Representatives (the Knesset) 
Prime Minister's Office 
Ministry of Agriculture and Rural Development
 
Ministry of Communications and Culture  
Ministry of Construction and Housing Ministry of Economics and Planning
 
Ministry of Education, Culture and Sport  
Ministry of Energy and National Infrastructures  excluding Fuel Authority 
Ministry of the Environment Ministry of Finance Civil Service Commissioner
 
Ministry of Foreign Affairs 
Ministry of Health (1) 
Ministry of Immigrants Absorption Ministry of Industry and 
, Trade and Labour  
Ministry of the Interior Ministry of Justice Ministry of Labour and 
Social Affairs 
Israel Productivity Institute  
Ministry of Religious Affairs  
Ministry of Science and Technology Ministry of Tourism Ministry of Transport 
The State Controller's office
Office of the State Co mptroller and Ombudsman  
 GPA/MOD/ISR/2 
Page 6  
APPENDIX I ISRAEL  ANNEX 2 Page 1/1
 
1 March  2000 (WT/Let/ 330)  
ANNEX 2 
 
Sub-Central Government Entities which Procure in Accordance 
With the Provisions of this Agreement 
 
 
Supplies  Threshold : 250,000 SDR 
 Services   (specified in Annex 4)  Threshold : 250,000 SDR 
 Construction   (specified in Annex 5)  Threshold : 8,500,000 SDR 
 
 
List of Entities : 
 Municipalities of Jerusale m, Tel-Aviv and Haifa 
 
The company for economy and management of the Center of Local Government
 
Local Government Economic Services Ltd.  
  GPA/MOD/ISR/2 
Page 7 
 
APPENDIX I ISRAEL  ANNEX 3 Page 1/1
 
1 March  2000 (WT/Let/ 330) ANNEX 3 
 
All Other Entities which Procure in Accordance 
With the Provisions of this Agreement 
 
Supplies  Threshold : 355,000 SDR 
 
Services   (specified in Annex 4)  Threshold : 355,000 SDR 
 Construction   (specified in Annex 5)  Threshold : 8,500,000 SDR 
 List of Entities : 
Israel Airports Authority 
Isr
ael Ports and Railways Authority (1)  
Israel Ports Development and Assets Company Ltd. (1)  
Ashod Port Company Ltd. (1)  
Haifa Port Company Ltd. (1)  
Eilat Port Company Ltd. (1)  
Israel Railways Limited (1)  
Israel Broadcasting Authority Israel Educati onal Television 
Israel 
Postal Authority 
Bezek (Israel Communication Company) (1) (2) 
Israel Electricity Company The Israel Electric Corp. Ltd. (1) (2a) 
Mekoroth Water Resources Ltd. Mekorot Water Co. Ltd.  
Sports' Gambling Arrangement Board Israel Standards Institute
The Standards Institution of Israel  
National Insurance Institute of Israel  
All entities operating in the field of urban transpor t, except those operatin g in the field of bus 
services (2b) 
 
Notes to Annex 3  
 
(1) Procurement of cables is excluded. 
 
(2) With regard to procurement by Bezek, this Ag reement shall apply only to  goods and services of 
the US. 
  Israel is willing to negotiate the opening of its telecommunication sector also to other Code 
members under the condition of reciprocity. 
 
(2a) Excluded products:  cables (H.S. 8544), electro-mechanic mete rs (ex. H.S. 9028), transformers 
(H.S. 8504), disconnectors and switchers (H.S . 8535-8537), electric motors (H.S. 8501). 
 (2b) With regard to procurement by entities operati ng in the field of urban transport, except those 
operating in the field of bus services, this Ag reement shall apply only to goods and services, 
including construction services, of the European Community. 
  Israel is willing to negotiate the opening of pr ocurement by entities operating in the field of 
urban transport, except those operating in the fi eld of bus services, to other Parties to the 
Agreement under the c ondition of reciprocity. GPA/MOD/ISR/2 
Page 8  
APPENDIX I ISRAEL  ANNEX 1 Page 1/2
 
... (WT/Let/...)  ATTACHMENT C 
 
ISRAEL  
 
(Authentic in the English language only) 
  
ANNEX 1 
 
Central Government Entities wh ich Procure in Accordance 
With the Provisions of this Agreement 
 
 
Supplies  Threshold : 130,000 SDR 
 Services   (specified in Annex 4)  Threshold : 130,000 SDR 
 Construction   (specified in Annex 5)  Threshold : 8,500,000 SDR 
 
 List of Entities : 
 House of Representatives (the Knesset) 
Prime Minister's Office 
Ministry of Agriculture and Rural Development Ministry of Communications Ministry of Construction and Housing Ministry of Education, Culture and Sport Ministry of National Infrastruc tures excluding Fuel Authority 
Ministry of the Environment 
Ministry of Finance Civil Service Commission Ministry of Foreign Affairs Ministry of Health (1) 
Ministry of Immigrants Absorption 
Ministry of Industry, Trade and Labour Ministry of the Interior Ministry of Justice Ministry of Social Affairs Ministry of Science and Technology 
Ministry of Tourism 
Ministry of Transport Office of the State Comptroller and Ombudsman   GPA/MOD/ISR/2 
Page 9 
 
APPENDIX I ISRAEL  ANNEX 2 Page 1/1
 
... (WT/Let/...)   
ANNEX 2 
 
Sub-Central Government Entities which Procure in Accordance 
With the Provisions of this Agreement 
 
 
Supplies  Threshold : 250,000 SDR 
 Services   (specified in Annex 4)  Threshold : 250,000 SDR 
 Construction   (specified in Annex 5)  Threshold : 8,500,000 SDR 
 
 
List of Entities : 
 Municipalities of Jerusale m, Tel-Aviv and Haifa 
 
Local Government Economic Services Ltd. 
  GPA/MOD/ISR/2 
Page 10  
APPENDIX I ISRAEL  ANNEX 3 Page 1/1
 
... (WT/Let/...)  ANNEX 3 
 
All Other Entities which Procure in Accordance 
With the Provisions of this Agreement 
 
Supplies  Threshold : 355,000 SDR 
 
Services   (specified in Annex 4)  Threshold : 355,000 SDR 
 Construction   (specified in Annex 5)  Threshold : 8,500,000 SDR 
 List of Entities : 
Israel Airports Authority 
Israel Ports Development and Assets Company Ltd. (1) 
Ashod Port Company Ltd. (1) Haifa Port Company Ltd. (1) Eilat Port Company Ltd. (1) Israel Railways Limited (1) 
Israel Broadcasting Authority 
Israel Educati onal Television 
Israel Postal Authority Bezek (Israel Communication Company) (1) (2) The Israel Electric Corp. Ltd. (1) (2a) 
Mekorot Water Co. Ltd. 
Sports' Gambling Arrangement Board The Standards Institution of Israel National Insurance Institute of Israel All entities operating in the field of urban transpor t, except those operatin g in the field of bus 
services (2b) 
 
Notes to Annex 3  
 
(1) Procurement of cables is excluded.  
(2) With regard to procurement by Bezek, this Ag reement shall apply only to  goods and services of 
the US. 
  Israel is willing to negotiate the opening of its telecommunication sector also to other Code 
members under the condition of reciprocity. 
 
(2a) Excluded products:  cables (H.S. 8544), electro-mechanic mete rs (ex. H.S. 9028), transformers 
(H.S. 8504), disconnectors and switchers (H.S . 8535-8537), electric motors (H.S. 8501). 
 (2b) With regard to procurement by entities operati ng in the field of urban transport, except those 
operating in the field of bus services, this Ag reement shall apply only to goods and services, 
including construction services, of the European Community. 
  Israel is willing to negotiate the opening of pr ocurement by entities operating in the field of 
urban transport, except those operating in the fi eld of bus services, to other Parties to the 
Agreement under the c ondition of reciprocity. 
__________