Exactly three years ago, the government planned to establish the new military base in the south, known as Ir Bahad. It is to be located south of Be'er Sheva, near the Negev Junction, and is expected to become the third largest population center in the Negev region, after Dimona and Be'er Sheva.
The government's decision in April 2011 included the relocation of large military installations, such as the bases at Tel Hashomer in east Tel Aviv, Tzirifin, the Sirkin base, and the Sde Dov site. The approval of the relocation of several bases from the center of the country was made three years ago, but to date, not a single facility has been moved south.
The planned move to move the camps to the south and north of the country serves several goals, including: developing the Negev and encouraging the Israeli public to move south, and slowing the rise in housing prices - by freeing up land for housing in the center of the country. Another consideration is that the IDF bases are located on the most expensive land in the State of Israel, and everyone will benefit from moving the bases.
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The total cost of the planned project was estimated at 50 billion shekels, and the cost for the initial phase was estimated at 19 billion shekels. The government planned to finance the relocation of the camps by allocating 13 billion shekels from the state budget, and to pay the remaining 6 billion shekels from another fund. Many investors and entrepreneurs are expected to profit from the sale of the land on which the military bases sit.
But in practice, funding through the Treasury budget was not available, and due to the long procedure for obtaining planning and building permits, the revenue from the sale of the land was delayed.
As of now, on Locker's recommendation, the government plans to sell (issue) bonds to the public for an initial 19 billion shekels. Later, more issues will be made to finance the advanced stages of the plan - moving bases between Haifa and Beersheba. The bonds to be issued will be secured by the lands in the demand areas, and will be repaid with the money the state receives from the sale of the lands. The state is also taking a loan from the public to finance the project.
It is reasonable to assume that since these are government securities, they will receive a high rating in the capital market. The government also estimates that the planning and construction processes will be accelerated due to the bond issuance, since there will be no need to wait until the land in the center of the country is sold.
The IDF's move to the south requires support in additional areas, such as education, the economy, and infrastructure. The government now has an opportunity to expand the center of the country beyond its borders, and to solve difficulties inherent in the core of the Israeli economy, such as the housing problem and the demographic problem of industrial concentration.
