Palestine Power Generation Company (PPGC) is a public shareholding company registered under the laws of the State of Palestine with its head office located in the City of Ramallah.
A group of Palestinian investment institutions, companies, and banks led by the Palestine Investment Fund established the Palestine Power Generation Company as a public limited company and registered in Ramallah in 2010 with the aim of localizing investment in the Palestinian energy sector and establishing the Jenin power plant as the first project to produce Palestinian energy In the West Bank and as one of the most important pillars of the Palestinian economy, which is in line with the directives of His Excellency Palestinian President Mahmoud Abbas “Abu Mazen” to focus efforts towards projects that build the pillars of the Palestinian state and support the steadfastness of the Palestinian citizen, so that we are ready to build the Palestinian state, with East Jerusalem as its capital, the jewel of the Palestinian crown.
Accordingly, the Palestine Power Generation Company entered into an implementation agreement and deed of guarantee agreement with the Palestinian government to build and operate the Jenin power plant, which will operate on natural gas through a combined cycle system with a capacity of 450 megawatts. The company obtained the government approval to construct the Jenin Power plant in two Phases, in which the phase one to be constructed with a capacity of (200-250) megawatts.
The company acquired the land plot on which the Jenin power plant project will be built in the Jenin governorate in the Al-Jalama area adjacent to the Jenin industrial area, due to its proximity to the high-voltage network of electricity transmission lines, the infrastructure of natural gas lines and the main ports, with a total area of about 148 dunams
The environmental impact study of the Jenin power plant project was completed within the relevant international standards, and the necessary environmental approvals and licenses were obtained from the Environmental Quality Authority.
The company has also completed the Project Master Plan for the Jenin power plant project and obtained the necessary approvals from the Palestinian Higher Council in the Ministry of Local Government.
Based on its national role and to enable the development of the Gaza natural gas field, the company has signed a Memorandum of Understanding with the of the Gaza gas field developers to provide long-term supplies of natural gas to the Jenin power plant project,
The company successfully Concluded the Approvals for the Extension of the Natural Gas Transportation System and Connection to the HP Natural Gas Grid from the INGL Affula Connection Point to the Greenline Boarder Under Master Plan
The Company successfully obtained A Positive Grid Survey to Connect the First Phase of The Jenin Power Plant of 200-250 MW to the Existing 161 Kv Grid Which is only 800m Away from the Plant to enable it to transfer the electric power that will be generated and produced at the plant to various parts of the country in the West Bank and Gaza Strip.
To carry out works related to the engineering, procurement, construction, operation and maintenance of the Jenin power plant project, the company has pre-qualified a group of international contractors and international equipment manufacturers specialized in engineering, procuring, building, operating, and maintaining power plants for the construction of the Jenin Power Plant
The company and its advisors, once the bidding period ends, will start the evaluation process to select the winner Tenderer to be awarded the engineering, procurement, and construction bid, and eventually conclude the EPC agreement, O&M and LTS agreements with the winner tenderer.
In parallel, the company is currently working on the concluding of the power purchase agreement with the Palestinian electricity distribution companies, according to which the capacity of the plant will be purchased.
The company is also working on the concluding the natural gas purchase agreement in accordance with the basic terms and principles that were agreed upon with the gas sellers.
To secure financing for the Jenin power plant project, the company is currently working with potential Palestinian, regional, and international financing institutions to secure the necessary debt funding for the project, to secure the financing close and conclude the financing agreement to grant the notice to proceed for the successful EPC Tenderer, and It is expected that the construction of the project will be completed in 2025, the company will start the commercial operations.
The Jenin power plant is expected to provide about 20% of Palestine’s annual needs of electrical energy during the first phase, which will reduce dependence on imported energy sources, which constitutes a national priority, to ensure the sustainability of the Palestinian energy sector and energy security in Palestine and to ensure sustainable development of the national economy.