On December 17, 2017, MIGA issued a guarantee for $6.93 million for the equity investment in assets by Palestine Real Estate Investment Company (PRICO) in its subsidiaries, PRICO Operating and Maintenance Ltd. in the West Bank and PRICO Contracting and Trading Ltd. in the Gaza Strip. The investor applied for a guarantee under MIGA’s West Bank and Gaza Investment Guarantee Trust Fund and under MIGA’s Conflict-Affected and Fragile Economies Facility for a period of up to 10 years against the risks of transfer and convertibility restrictions, expropriation and war and civil disturbance, including temporary loss of income.
The Project involves the development, financing, construction, operation and maintenance of a 7 MWp rooftop solar photovoltaic (PV) power plant being developed by PRICO, the Guarantee Holder, located inside the Gaza Industrial Estate (GIE) in the Gaza Strip. The solar panels will be installed on the rooftops of 32 factories located in GIE. The Project will be implemented by two Special Purpose Vehicles: (i) PRICO Operating and Maintenance Ltd. of West Bank and (ii) PRICO Contracting and Trading Ltd. of the Gaza Strip. The Project will benefit from an IFC A- Loan, an IFC concessionary loan and a World Bank grant.
The project is categorized as B under MIGA’s Policy on Environmental and Social Sustainability. Environmental and social impacts related to the Project are limited in nature and readily addressed through mitigation measures. Key E&S risks and impacts are related to worker labor and working conditions, occupational health and safety, and resource efficiency related to water use in the context of an arid environment. Click here for the project’s Environmental and Social Review Summary.
This project aims at providing a substantial portion of the expected electricity needs of GIE at a tariff rate 10% below the rate currently charged by Gaza’s Electricity Distribution Company (GEDCO). Through this project, GIE’s factory tenants will have access to a reliable source of electricity with significantly fewer interruptions. This will enable factories to maintain and potentially expand production and employment levels in a territory in which unemployment is over 40%. In this way, the project will support private sector development in the manufacturing sector. Any excess supply of electricity will be fed into GEDCO’s grid, contributing to alleviating significant energy shortages experienced by residents in the Gaza Strip. Utilizing solar energy for electricity production will result in less pollution and greater self-sufficiency.