Palestine Power Generating Company PLC
This summary covers an investment by Palestine Electric Company, Palestine Development and Investment Company, Palestine Investment Fund, Palestine Private Power, and other key investors in the Palestine Power Generating Company PLC (PPGC) in the West Bank. The investors have applied for a guarantee of $9 million under the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund. The guarantee will cover a $10 million equity investment for a period of up to two years against the risks of expropriation, breach of contract, and war and civil disturbance.
The project involves the undertaking of a feasibility study for the development of a gas-fired independent power producer facility within the designated industrial zone of Jenin. The feasibility study entails site identification and investigation, land acquisition, technical and financial studies to ensure that the correct framework and structure is in place to develop a sustainable project, as well as the preparation and execution of the project agreements. The envisaged power plant will be constructed on a build, own, and operate basis and will initially have a 200 megawatt generating capacity. PPGC and the Palestinian Energy and Natural Resources Authority have engaged in a Memorandum of Understanding (MOU) to set out the framework of the feasibility study. MIGA’s proposed support would cover certain clauses within that MOU.
The project is a category C under MIGA’s Policy on Social and Environmental Sustainability.
Increasing power generation capacity and reducing electricity shortages is a key development priority for the West Bank and Gaza. MIGA’s involvement in the feasibility phase will help ensure the project is developed in accordance with good industry practices, including sound environmental management. This proposed project is also aligned with MIGA’s objective of facilitating investments in conflict-affected environments as well as entities eligible for assistance from the International Development Association.
This project is also aligned with the World Bank Group’s strategy to support public infrastructure development in the West Bank and Gaza. Support from the International Finance Corporation and the World Bank is anticipated during the project development phase.