State-owned Israel Electric Corporation and the Palestinian Authority signed an agreement on Monday to boost Israeli electrical supply to the West Bank, even as Gaza endures daily blackouts in a Palestinian political dispute. Under the deal, a new electrical substation was inaugurated near the West Bank city of Jenin.

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Palestinian Prime Minister Rami Hamdallah and Israeli Energy Ministry Yuval Steinitz cut the red ribbon in a show of Israeli-Palestinian cooperation, three years after peace talks collapsed.

Palestinian PM Hamdallah and Israeli Energy Min. Steinitz (both center) cut the ribbon at Monday's ceremony (Photo: Yossi Weiss)

The facility will transmit 60 megawatts of electricity purchased from the Israel Electric Corp (IEC), officials said.

The West Bank is dependent on Israeli electricity and the internationally-funded substation is one of four that will be operated in the area by a Palestinian Authority-owned transmission company.

Three more power stations are being built in Ramallah, Nablus and Tarqumiyah.

Photo: Yossi Weiss

"This is a historic and encouraging moment," said Minister Steinitz at the power station's inauguration ceremony. "When you act together, great things can be achieved."

He added that "Israel is interested in improving the Palestinian economy, and here we have a project that is beneficial for both parties. It will provide Palestinians with greater electricity at a more consistent rate, and it's good for Israel because it guarantees through guarantees that the additional electricity to the Palestinians will not fall on the electrical company's shoulders. I hope this project will be used as a model for future projects."

Palestinian Prime Minister Hamdallah referenced the Gaza electricity crisis by saying, "the president has offered an initiative with Hamas, and we are waiting for their positive response regarding the managing committee that Hamas has set up in Gaza, while allowing for a joint government that would act in all possible fields in the Gaza strip.

"This isn't a condition, but the full package," added Hamdallah. "We don't want two governments but one government, which Hamas has also agreed upon, and which should have complete authority."

Photo: Yossi Weiss

A power boost for the West Bank coincides with an energy crisis in the Gaza Strip, where the ruling Hamas party refuses to acknowledge the Palestinian Authority's governance over it. The PA, with Palestinian President Mahmoud Abbas at its helm, has recently taken a tough stance against Hamas, saying that the PA will no longer provide Gaza with services—including electricity—until Hamas hands over control of the strip. The Palestinian Authority further stated that Hamas movement has not been reimbursing it for Gaza's electricity.

At present, electricity flows only two to three hours a day and medical facilities and residents who can afford to buy fuel largely rely on generators.

Since last month, the Israel Electric Corporation has cut by nearly half the amount of power it supplies to Gaza after the PA slashed its payments to the company for the electricity.

Palestinian political analysts and Hamas said the PA generated an energy crisis to pressure Hamas into loosening its grip on Gaza, a decade after the group seized the enclave from forces of the mainstream Fatah party.