Qatar signs agreement to fund the energy production at Gaza power plant

By Shilpa Annie Joseph, Official Reporter
  • Follow author on
Representational Image

The Qatari Foreign Ministry has stated that the country will establish an escrow account with Gaza’s electricity companies to cover the costs of gas supply and power generation through Gaza’s only power plant.

Under the agreement, the Qatari committee will be the main owner of this account and will organize and manage the payments through it. Further, the Gaza Electricity Distribution Company will deposit $5 million per month into this account when the gas power plant starts operating.

Qatar’s envoy to the Gaza Strip, Mr. Mohammed Al Emadi signed the deal with the Gaza Electricity Generation Company and the Gaza Electricity Distribution Company, according to a statement from the Qatari Ministry.

The signing ceremony took place at the headquarters of the Qatari committee in Gaza, where Mr. Al-Emadi met with Mr. Walid Salman, representative of the Gaza Electricity Generation Company, and Mr. Kanaan Obaid, chairman of the board of directors of the Gaza Electricity Distribution Company. They discussed the latest developments in the electricity crisis in Gaza and its solutions.

In December, the Qatari committee signed a memorandum of understanding (MoU) with the Energy and Natural Resources Authority and the Gaza Electricity Generation Company that included an agreement on the processes for supplying and purchasing gas required to operate the power plant in Gaza.

According to the reports, “Under the MoU, the Qatari committee will finance the construction of the gas pipeline from the supplier company to the borders of the Gaza Strip at a cost of $60 million, while the Gaza Electricity Generation Company and the Energy Authority will undertake the work of converting the plant to work with gas, as well as increasing the plant’s production capacity to reach a minimum of 500 megawatts.”

Related: Saudi Arabia inks 8 MoUs to develop hydrogen fuel cell-based transport