Program for sustainability in Palestinian energy gets $63m. in funds
The program calls for sustained financing in order to support long-term planning, interventions in infrastructure and policy reform measures.
By AARON REICHIsraeli engineer stands in the new electrical substation near the West Bank city of Jenin(photo credit: ABED OMAR QUSINI/REUTERS)
New grants totaling $63 million have been approved to finance the first phase of a program aimed at advancing sustainability in the Palestinian energy sector.The funds, made up of a $14m. grant from the World Bank and a $49m. grant from donor partners, will support the Advancing Sustainability in Performance, Infrastructure, and Reliability of Energy Sector (ASPIRE) program, which will work to diversify energy sources as well as improve the operational and financial performance of Palestinian energy institutions.The program calls for sustained financing in order to support long-term planning, interventions in infrastructure and policy reform measures.The first phase of the multi-phase program – itself building on the World Bank's flagship report Securing Energy for Development – will focus on building infrastructure as well as rehabilitating existing ones. This will serve to facilitate electricity interconnections with Israel and Jordan, as well as improve reliability. It could also result in giving further support to improved metering systems, focusing on finding solutions for impoverished communities and reducing losses from to unregistered customers and theft.It will also work to pay attention to gender gaps, with the solar funding mechanisms for households strengthening support for female-headed households and Gaza, and will be expanded to the West Bank. The program also encourages private sector participation in the renewable energy field, seeking to support women entrepreneurs and engineers.Electricity is a persistent issue for Palestinians, who often rely on power from Israel. On more than one occasion, the Israel has reduced or cut power to the West Bank and Gaza Strip. In August 2019, the IDF cut power to Gaza as well as limiting the amount of fuel they would allow into the Hamas-controlled coastal enclave after rockets were launched at Israel from the Strip.Mohammad Thabet, spokesman for the Gaza Electricity Distribution Company (GEDCO), described the Israeli decision at the time as collective punishment.In October 2019, the Israel Electric Company cut power sent to the West Bank due to the Palestinian Authority reportedly having an unpaid debt of around NIS 1.7 billion.“Power demand in West Bank is fast outpacing supply and Gaza is already facing severe challenges with electricity supply,” said World Bank country director for West Bank and Gaza Kanthan Shankar.Advertisement“This multi-phase programmatic approach, new to the region, is a model of collaboration between the World Bank, the Palestinian authority and the donor partners to ensure more stable energy supplies while enabling transformation of the sector.”
“In the Palestinian fragile context, the multi-phase program will offer the flexibility to adapt the course of actions to new emerging challenges, such as the COVID-19 pandemic, and opportunities while aiming for a more stable and sustainable energy sector,” said World Bank senior energy specialist Monali Ranade.“Over eight years, the program will enable the sector to strengthen its creditworthiness and attract private sector investment.”Tovah Lazaroff, Khaled Abu Toameh and Tzvi Joffre contributed to this report.
