Egypt agrees to be Gaza Power Supplier

20 March 2008

Israeli and Egyptian representatives agreed in principle Wednesday to a deal that would have Egypt replace Israel as the Gaza Strip's sole electricity provider.

Under the deal, Egypt would set up a new power line from the Sinai Peninsula town of Arish to the nearby Gaza Strip. The 150-megawatt line would cost $35 million to set up, and would be operational within two years.

Egypt currently provides the Gaza Strip with only 7 megawatts of power, while Israel provides 124 megawatts via 10 different lines. A local power station produces the remainder.

Security sources say the agreement will effectively free Israel from supplying Gaza with electricity, even though it does not specifically say so.

Palestinian Energy Committee chair Omar Katana, who is in charge of the project on the Palestinian side, is not affiliated with the Palestine legal government.

Two weeks ago, he said the Egyptian plan would be funded by the Saudi Islamic Development Bank. Tenders will be issued over the next few days.

Israeli security sources said the infrastructure minister and the Defense Ministry have been in talks with Egypt for a long time. The deal won the approval of Defense Minister Ehud Barak, who is interested in severing ties with Gaza.

"Ostensibly, we will lose our control of the Gaza power switch, but it also entails a huge advantage if we can transfer responsibility for electricity to Egypt," security officials said.

Channel 10 Wednesday aired the first pictures of the fence erected by the Egyptians along the border with Gaza, to replace the one that was overrun several months ago. The new barrier has numerous sniper positions and guard posts.