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FIRST INDEPENDENT POWER GENERATION PROJECT IN PALESTINE

Under the patronage of President Arafat, Dr. Abdul Rahman Hamad, head of the Palestinian Energy Authority, together with the chairman of the Palestine Electricity Co., Mr. Said Khoury, signed an agreement to build a 140 megawatt power plant to be located in Gaza, to provide electricity for more than 140,000 homes in the Gaza Strip, and will meet all of Gaza's electrical demands for the next 10 years. Enron International, a subsidiary of Enron Corporation, will participate in the construction of the US$ 140 million combined-cycle power plant, initially utilizing solar energy as a fuel source with the possibility of conversion to gas upon availability. The plant is expected to be operational in mid-2000. Minister of Planning & International Cooperation, Dr. Nabil Shaath, said that the Swedish construction company ABB will build the power plant. This will be the first independent power generation project in Palestine and will relieve the southern provinces of Palestine from depending on Israel for electricity.