BICOM

The Palestinian Authority (PA) Prime Minister Rami Hamdallah and Israel’s Energy Minister Yuval Steinitz signed a historic electricity deal yesterday.

The new agreement provides a framework for Israel to supply power to the Palestinian Authority and addresses the issue of payment that caused severe problems in the past with the PA defaulting on debts and Israel reducing electricity supply.

The ministers opened a new electricity sub station at Al-Jalameh, near Jenin, the first ever PA owned electricity sub-station that will distribute power to local towns and cities. The station was built by the Israel Electric Corporation, by Israeli and Palestinian workers, but is owned by the Palestinian Electric Authority (PEA) and the PA. The sub-station was part subsidised by Italy, Norway, the European Union, the United States Agency for International Development (USAID), and the European Investment Bank.

Energy minister Yuval Steinitz said the new deal was a “win-win” for Israel and the Palestinians and a model for Israeli-Palestinian cooperation in water supply and water treatment.

PA Prime Minister Rami Hamdallah said the project was “pivotal to enhance our independence so we can meet the growing needs of our people in the electricity sector”.

The PA is working with private companies to build a power station in Jenin that will cost an estimated $620m and be operational by 2020. It will produce 450 megawatts, 50 per cent of the PA’s current electricity needs in the West Bank.