Enron signs Palestine power sales agreement

Enron signs Palestine power sales agreement

Enron International and the Palestine Electric Company (PEC) have together signed a 20-year power purchase agreement with the Palestine Energy Authority for the supply of power from a 136 MW power plant under development in the country. The project will be the first major US private infrastructure investment and first independent power project in Palestine.

PEC, a consortium of commercial and institutional investors, is co-developing the combined cycle plant with the wholly owned Enron Corp. subsidiary. The two organizations expect to achieve financial close in autumn 1999. Commercial operation is slated for mid-2000.

The plant will be located south of Gaza City in the Gaza Strip and is expected to cost $140m. It will be funded with a combination of debt and equity. PEC`s investors, which include Greece`s Consolidated Contractors Company, the Palestine Development and Investment Corp. and the Arab Bank, plan to offer shares to the public representing a one-third interest in the project.

Enron Europe Ltd. has signed a 20-year PPA with the Croatian national electric utility for the supply of power from the country`s first independent power project.

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