On May 28, 2015, the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund issued a guarantee of €1.35 million ($1.53 million) covering investments by Agropal Investments Company of the West Bank and Gaza and Oosterhof-Holman BioEnergy BV of the Netherlands in Energy for Future Generations for Renewable Energy Co. in the West Bank and Gaza. MIGA’s guarantees are for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
This is a pilot project involving the establishment of a biogas plant that will provide renewable energy and bio fertilizers to local farmers. An educational center will provide training and include a research lab for the biogas plant and other activities. The project is located in Al Dahyria, a village 26 kilometers south of Hebron City, south of West Bank.
With demand for electricity increasing by 7 percent annually, the Palestinian Energy Authority is prioritizing the renewable energy sector. The Energy Authority is planning to have 10 percent of electricity generated from renewable energy sources, and this pilot project will help meet that objective while helping to reduce emissions from diesel generators. The project will also support agricultural development by providing local farmers a source of high-quality fertilizer, as imports are prohibited. The project is the first of its kind in the Palestinian Territories and thus there will be substantial knowledge transfer and the creation of nearly 30 jobs.
This project is being supported by the PSI Plus program of the Netherlands Ministry of Foreign Affairs with a grant to cover up to 60 percent of the project cost and an additional amount to cover the MIGA political risk insurance premium for the first three years.
MIGA’s support for this project is aligned with the agency’s objective of facilitating investments in conflict-affected environments as well as entities eligible for assistance from the International Development Association.
The project is underwritten through MIGA’s Small Investment Program.