Palestinian electricity supplier PETL in Ramallah has reached an historic deal to settle the Palestinian Authority's debts to the Israel Electric Corporation (IEC), Israeli economic outlet the Globe revealed yesterday.
Nearly one billion shekels ($277 million) is owed by the PA to the IEC with the deal setting out a timeframe for repayment. Under the deal, which is valid for 15 years, Palestinians will collect payments for the electricity and offer the IEC bank guarantees for future debts.
In addition, the deal transfers the management of the electricity supply from the IEC to the PA electricity authority.
The Globe said: "[Through the deal] the IEC will sell electricity to the PETL through four high-tension sub-stations built by IEC for PETL and through high and low-tension connection points for the purpose of distribution and supply of the electricity by PETL or an entity on its behalf to consumers in PA territory."
"PETL will have sole operational and maintenance responsibility for distribution and supply and ownership of the four sub-stations."
The settlement, which was reached following to negotiations started in 2016, includes paying the debt of 915 million shekel ($254 million) in 48 payments.