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Role, Power and Obligations of the Management Organization Parties for Project Implementation

  Reference is made to the enclosed tentative Project Organization Chart, where the main contractual parties – beside the financier, Sida/INCýEC are PEA, the Contractor and the Engineer.

  The Palestinian Energy Authority, PEA, will be the owner of the Project and as such the “Employer” of the “Contractor” and the “Engineer” according to the main contract for the project implementation (and a separate engineering contract).

PEA will appoint members of the Steering Committee and the Transmission Project Execution Team and delegate to the latter appropriate part of its power of the contracts. Decisions on major financial and contractual project matters should remain with PEA Management.


  Sida/INEC will finance the project, i.e. provide the financing scheme and funds for payment of contract execution, stipulate the related conditions, arrange loans and approve the release of credits.

Sida/INEC will monitor the project through requested reporting on progress of implementation from PEA and the Engineer. Reports should cover project account, timely and technical progress, quality matters and possible problems.

The Contractor

The Contractor is supposed to be assigned for turnkey supply of the entire transmission system whereas the commissioning of plants as far as possible should coincide with the power plant. This probably means that priority should be given first of all to complete the substation at the power plant.

Most project matters to be dealt with the Employer, the Contractor should communicate through the Engineer.

The Engineer

  The Engineer is supposed to be contracted according to FIDIC principles, i.e. to work and act in project management to great extent on behalf of PEA, “the Engineer”. The assignment, however, also means that he should act in a fair manner with regard to the interest of the Contractor.

The Engineer will be the formal counterpart of the Contractor regarding approval of sub-contractors, suppliers, design, technical solution, material, apparatus, installation etc. He will further be responsible for the certification of payments to the Contractors.

In order to achieve full commitment of PEA to all steps of the project and transfer of know-how, the Engineer shall throughout the project work in close co-operation with PEA Execution Team and always seek their (PEA,`s) consent to decisions taken. To facilitate the close cooperation, the Engineer’s resident project team ought to share office site with the PEA Execution Team.

The Steering Committee

  The Project Steering Committee (PSC) shall be the management body to direct and monitor the project and the project coordination on behalf of PEA. Members of the PSC shall be relevant representatives of the PEA top management with a GEDCO manager and the Engineer’s Project Manager as additional Members.

The PSC shall meet regularly and on demand to keep informed on project implementation progress, discuss and decide on major project events like:

Selection of Contractor

Approval of Contract

Approval of sub-contractors

 Approval of important design matters

Possible major deviations from contract specifications, approved design or the time schedule.

Major corrective actions

Final approval of major deliveries and plants.

 Approval of major financial events.

The Execution Team

  The project Execution Team shall be the group of PEA managers/ specialists to be appointed – full time or part time – to be directly responsible and engaged in the implementation of the transmission system.

The team shall work in close cooperation with the Engineer’s project team and for this purpose preferably be located in the same office premises.

The tasks and responsibilities of the team shall include the following:

monitor project activities

advice and supervise on local conditions

 support in authority contacts and permissions

review of design and specifications

discuss and agree on project matters

 inspection of material supplied and installations made

participate in factory inspections and testing

check and approve of invoices

keep project accounting

keep project records and files

The Engineer’s Project Team

The Engineer’s Project Team is the combined resident and home office back-up team of managers/ specialists employed by the Engineer to execute his duties in the project, headed by the Engineer’s Project Manager.

The Engineer’s Back-up Team shall be home office specialists appointed to take on project duties on demand like review of design and solutions, choice of materiel and equipment, factory and site inspections and testing. As appropriate they shall work together with PEA Execution Team members for the purpose of resource saving and transfer of know-how.

The Engineer’s Resident Team shall be a resident team of specialists headed by the resident Project Manager and appointed full-time or part-time to execute the Engineer’s duties on site including the close cooperation with and transfer of know-how to the PEA Execution Team.

Hence, the resident Team shall preferably share office premises with PEA Execution Team.

Most of the Engineer’s authority of power of the Project will be delegated to the Resident Project Manager.


Text Box: Power Plant Project

IPP Project Team
















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Palestinian Energy Authority:

Main Office PEA. :     Gaza -P.O Box 3041/ Tel: 972-7-2821702 , Fax : 972-7-2824849

                                        Al-Bireh-P.O. Box:3591 / Tel: 972-2- 2986190/2 , Fax:972-2-2986191