The plan included an LRT line which was to loop around central Tel Aviv before turning east and branching out to Petah Tikva and Yehud.

In August 2016, the government approved the construction and operation of the line, as a public-private partnership (PPP), at a then-estimated cost of NIS 8.6 billion.

[13] Demolitions of buildings on the route in the Kfar Shalem neighbourhood of Tel Aviv began in July 2018,[14] and preparatory construction works on the line commenced in December 2018.

[15] Tenders for rolling stock, tracks, electrification, signalling and maintenance were published in July 2018,[16] and by September 2020 five international consortia submitted their bids.

The contract included maintenance of the line for 25 years, as well as delivery of 98 low-floor five-section units of CAF Urbos LRV to serve as rolling stock.

[18] In September 2022, the Tel Aviv District Court ruled in NTA's favour, concluding that CRCC presented no evidence to support its claim, and noting that Chinese companies continue to win tenders in infrastructure projects across Israel.