PA graft suspected as power plant revenues rise despite falling output and bill collection

According to The Palestine Telegraph The Palestinian Center for Human Rights (PCHR) has carried out an investigation into the reason for the power outages in Gaza and who is to blame. Back in November last year the European Union stop paying for industrial fuel for Gaza's only power plant. On Thursday last week it was announced that the plant only had power for four days amid accusations that the Palestinian Authority has been underfunding supply. But despite the constant power outages the company that runs the power plant has seen an increase in revenues, which is strange given that falling output and the difficulties faced by impoverished Gazans trying to pay their bills. Go figure.

The power plant, PCHR noted, is a stock company, a third of which is owned by Morganti, an American company. The Palestinian Development and Investment Company (PADICO), Pal Tel Group, the Arab Bank and other companies own the second third of the Plant's shares, while the third third is owned by individual shareholders, the report said. In June 1999, the plant declared and subscribed capital of 60 million US dollars, in 2008, the net revenues were registered at 6.278 million, while in 2007, its revenues amounted to 4.355 million.

"We can not understand the large size of revenues made by the Power Plant in view of the growing power crisis in the Gaza Strip," PCHR noted.

The Palestinian Energy Authority was established in 1995. In accordance with its establishment law, it enjoys an independent nominal character. It belongs to the PA president. Under the implementation agreement entered into between the Gaza Power Plant and PA, the Energy Authority is committed to finance and supply the industrial fuel required to operate the plant. The Energy Authority is also committed to purchase the Plant's power production for 20 years. It is also committed to pay the amount of 2.5 million monthly to the plant as fixed operational costs.

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