On May 1, the Palestinian Authority (P.A.) concluded a 15-year agreement with Israel worth an estimated 775 million USD. Under the agreement, the P.A. will be able to build four power plants and administrate electricity distribution to Palestinians in the West Bank.
The agreement also included the settlement of the debts of the Israel Electric Corporation of Israel on the Jerusalem Electricity Company, with the latter repaying debts of 915 million shekels (256 Million USD) to 48 payments under the guarantee of the Palestinian Authority.
Under this agreement, the Israeli electricity company will sell electricity to the Palestinian National Electric Transmission Company (PETL) via four plants built by Israel Electric Corporation and the Palestinian Authority. The Palestinian company will own the stations and distribute electricity supplies.
“This morning, an agreement was reached between the Palestinian and Israeli sides, whereby the electric power sector will be liberated from full Israeli control, which lasted for many decades,” said the head of the Civil Affairs Authority of the Palestinian Authority, Hussein Al-Sheikh.
“It creates a new reality in the energy sector for the Palestinians, reduces restrictions on electricity supplies, strengthens economic stability … and opens a new era in economic relations between the two sides,” said Shai Papad, director of the Israeli Finance Ministry.
Engineer Zhafer Melhem, head of the Palestinian Energy Authority, attended the signing as a representative of Palestinian side, and a representative from the Israel Electric Corporation (IEC) attended on behalf of the Israeli side.
