PA threatens to terminate contract with Gaza Electricity Company

Gaza power plant

An official source told the PIC on Wednesday that the Palestinian Authority (PA) threatened to terminate its contract with the Gaza Electricity Company if it operates Gaza’s power plant following the entry of Egyptian fuel into the Gaza Strip.

The Egyptian authorities allowed for the first time on Wednesday the entry of a million liters of industrial fuel through Rafah Crossing to operate the power plant that has been shut down for more than two months.

The PA president Mahmoud Abbas had started retaliatory steps against the Gaza Strip under the pretext of punishing Hamas, the most prominent of which was asking Israel to reduce Gaza’s power supply. Two days ago, the Israeli authorities began to implement the PA’s request gradually.

The electricity reduced until this moment amounted to 24 out of 120 MWs. Experts predict that the reduction will reach more than 40% in the coming days.

There has been news recently about the PA rejection of the talks held between Hamas Movement and the Egyptian authorities in the presence of leaders close to the dismissed Fatah leader Mohammed Dahlan.

The Palestinian Electricity Company was established in 1999. It signed a 20-year monopoly contract with the PA for generating electricity in Gaza in return for the construction of a 560-MW plant that will be implemented in four stages, each of which includes 140 MWs. However, only the first stage has been implemented.

Under the contract, the plant receives about 2 million dollars a month whether it operates or not and the PA is responsible for providing it with fuel, which makes its profits guaranteed. Any dispute between the two sides shall be referred to the British courts.

The main contributors in the company, which also has US and Israeli shares, are influential figures in the PA and Fatah Movement or their affiliates.

The already worn-out plant was bombed several times during the Israeli wars on Gaza which affected its efficiency and storage capacity.

(Source / 22.06.2017)

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