Identifier
Created
Classification
Origin
06JERUSALEM3555
2006-08-11 11:33:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
ABU MAZEN'S OFFICE BUYS TRANSFORMERS FROM EGYPT
how-toVZCZCXYZ0000 OO RUEHWEB DE RUEHJM #3555 2231133 ZNY CCCCC ZZH O 111133Z AUG 06 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 4173 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEHBS/USEU BRUSSELS PRIORITY
C O N F I D E N T I A L JERUSALEM 003555
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR WATERS/MAHER/WAECHTER;
NSC FOR ABRAMS/DORAN; TREASURY FOR NUGENT/ADKINS
E.O. 12958: DECL: 06/09/2016
TAGS: ENRG EFIN EAID KWBG IS
SUBJECT: ABU MAZEN'S OFFICE BUYS TRANSFORMERS FROM EGYPT
FOR GAZA
REF: JERUSALEM 2748
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).
C O N F I D E N T I A L JERUSALEM 003555
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR WATERS/MAHER/WAECHTER;
NSC FOR ABRAMS/DORAN; TREASURY FOR NUGENT/ADKINS
E.O. 12958: DECL: 06/09/2016
TAGS: ENRG EFIN EAID KWBG IS
SUBJECT: ABU MAZEN'S OFFICE BUYS TRANSFORMERS FROM EGYPT
FOR GAZA
REF: JERUSALEM 2748
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).
1. (C) PA President Abbas' office authorized the purchase
August 3 of seven power transformers from Egypt with USD 1.8
million provided by the Arab League to the Egyptian Electric
Company, according to the UN Special Coordinator's Office
(UNSCO) and press reports. These transformers are to replace
those destroyed in the June 28 Israeli air strike against the
six transformers at the Gaza power plant (reftel). (Note:
The Gaza Power Generating Company (GPGC),the private company
that owns the Gaza Power Plant, owned four of the
transformers and the Palestinian Energy Authority (PEA),a PA
agency, owned the other two. Prior to June 28, the Gaza
Power Plant provided 43 percent of electricity consumed in
Gaza, with the remaining 57 percent imported from the Israel
Electric Company. End note.)
2. (C) An additional USD 2.6 million must still be raised to
cover transportation costs from Egypt and installation of the
transformers. According to Swedish Consul Annika Johansson,
the Swedish government has expressed its willingness to fund
this project and is discussing the matter with the Office of
the PA President. However, Johansson told EconOff that the
Swedish government remains concerned about the volatile
security situation in Gaza and the threat it may pose to this
project.
3. (C) According to UNSCO, once transportation and
installation funds are secured, the Palestinian Energy
Authority (PEA) estimated that the Gaza power plant could be
up and running within one month. Walid Salman, the Executive
Managing Director of the GPGC, told EconChief that this
temporary solution would allow the Gaza Power Plant to
produce 50 MW of electricity. At a later date, permanent
replacement transformers would have to be purchased to allow
the Gaza Power Plant to operate closer to its full capacity
of 110 MW. (Note: Permanent replacement transformers are not
currently available on the market and would need to be
manufactured. In 2004, OPIC provided political risk
insurance to Morganti Development, the U.S. investor that
owns a 33 percent share in the Gaza Power Plant. We
understand Morganti is still completing its claim. End note.)
WALLES
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR WATERS/MAHER/WAECHTER;
NSC FOR ABRAMS/DORAN; TREASURY FOR NUGENT/ADKINS
E.O. 12958: DECL: 06/09/2016
TAGS: ENRG EFIN EAID KWBG IS
SUBJECT: ABU MAZEN'S OFFICE BUYS TRANSFORMERS FROM EGYPT
FOR GAZA
REF: JERUSALEM 2748
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).
1. (C) PA President Abbas' office authorized the purchase
August 3 of seven power transformers from Egypt with USD 1.8
million provided by the Arab League to the Egyptian Electric
Company, according to the UN Special Coordinator's Office
(UNSCO) and press reports. These transformers are to replace
those destroyed in the June 28 Israeli air strike against the
six transformers at the Gaza power plant (reftel). (Note:
The Gaza Power Generating Company (GPGC),the private company
that owns the Gaza Power Plant, owned four of the
transformers and the Palestinian Energy Authority (PEA),a PA
agency, owned the other two. Prior to June 28, the Gaza
Power Plant provided 43 percent of electricity consumed in
Gaza, with the remaining 57 percent imported from the Israel
Electric Company. End note.)
2. (C) An additional USD 2.6 million must still be raised to
cover transportation costs from Egypt and installation of the
transformers. According to Swedish Consul Annika Johansson,
the Swedish government has expressed its willingness to fund
this project and is discussing the matter with the Office of
the PA President. However, Johansson told EconOff that the
Swedish government remains concerned about the volatile
security situation in Gaza and the threat it may pose to this
project.
3. (C) According to UNSCO, once transportation and
installation funds are secured, the Palestinian Energy
Authority (PEA) estimated that the Gaza power plant could be
up and running within one month. Walid Salman, the Executive
Managing Director of the GPGC, told EconChief that this
temporary solution would allow the Gaza Power Plant to
produce 50 MW of electricity. At a later date, permanent
replacement transformers would have to be purchased to allow
the Gaza Power Plant to operate closer to its full capacity
of 110 MW. (Note: Permanent replacement transformers are not
currently available on the market and would need to be
manufactured. In 2004, OPIC provided political risk
insurance to Morganti Development, the U.S. investor that
owns a 33 percent share in the Gaza Power Plant. We
understand Morganti is still completing its claim. End note.)
WALLES