GAZA TRANSMISSION PROJECT
PALESTINIAN ENERGY AUTHORITHY - PEA
complete basic project
Development and Sector policy
of Target Groups/Analysis of Participants
Relevant to the Project
AND ASSUMPTIONS RELATED TO PROJECT IMPLEMENTATION
need for Capacity Building
schedule, phasing Out, End of Project
SOUND AND SUSTAINABLE DEVELOPMENT
and legislation to support the Project
of Technology in relation to prevailing Conditions
and institutional capacity building
and economic sustainability
of Sector policy
Connection Plan Summary
An Extensive and
on the Gaza and West Bank Electric Power System was carried out by Rust
Kennedy and Donkin (RK&D) in 1995/1996. This was followed by an
appraisal for provision of a power plant in Gaza, performed by SwedPower
in 1996 and an assessment by RK&D in 1998 for the Gaza Transmission
Project. It was obvious from the studies that the main supply of Gaza
Strip from Israel Electricity Corporation (IEC), via 9x22 kV feeders, is
neither capable nor suitable to handle the current and/or the forecasted
future load demand. Being altogether dependent on IEC for the electricity
supply is also not acceptable for the future development of Palestine
society. Therefore, building an independent electric power supply system
is an urgent necessity.
The system as outlined
in the last study may be summarised as follows:
Building an independent Power Plant (P/P).
Building a high voltage (HV) Transmission System to transmit, in an
optimal method, the generated power from the P/P to bulk supply points,
from which it will be distributed to the various consumers.
Extension and rehabilitation of the existing 22 kV Distribution
Building a suitable Dispatch Control Centre (DCC). (for future
The Palestinian Energy
Authority (PEA) have finished the
preparation for an IPP power plant for the purpose of securing the electric
power supply in the Gaza Strip where:
The realisation of the P/P has been already started,
where an IPP entity is established and advance payment is made for the
delivery with commissioning of the first gas turbine unit in June 2000.
PEA has signed the power purchase agreement (P.P.A)
with the Palestinian Electric Company (PEC) at 18.06.1999.
PEC has signed the Engineering, Procurement and
Construction (EPC) contract with ABB
STAL at 01.07.þ1999þ.
Furthermore, notice to proceed (NTP) has been
given to ABB STAL at 20.09.1999.
At 26.10.1999 the president YASER ARAFAT put
the corner stone for the power plant.
ABB STAL is today in an advanced stage of
design and manufacturing of turbines and Generators, first stage will be
four generators with 140 MW and the first Generator Commissioning will be
at June 2000.
The plant, which is planned to
be located 3 km away from the Mediterranean sea shore, approximately 10 km
south of Gaza City, will be a combined cycle gas turbine plant with a
capacity of 140 MW in the first phase. This corresponds roughly to the
expected peak demand from the year 2000. The plan for a second phase is to
double the plant to reach a total capacity of 280 MW, which may possibly
cover for the sharp increase expected in the first decade of the next
load forecast for the next 10 years is that there will be an increase of
about 100%. Then it should be noted that this includes a significant
portion of surpressed load, which is estimated to about 25% and is
expected to become actual within the first three years after commissioning
of the new system.
Regional Transmission System
is considering to link Gaza to a regional transmission system in a later
phase. Connecting Gaza networks to the Egyptian supply system, presently
being extended by 220 kV into the northern parts of Sinai, appears to be a
relevant future solution. Moreover there is an interest for a future high
voltage link to the West Bank.
The Transmission System
Several studies have been
carried out to analise a suitable transmission system in Gaza, taking into
account both the Gaza power plant and the regional transmission system. The
present unite conclusion is that a 220 kV power transmission system should
be established in Gaza with a North and a South substation in addition to a
West substation at the power plant.
HV Transmission System is subject for this document and comprises the
Building a main 220/22 kV West Substation (S/S)
attached and integrated to the Gaza Generating Plant.
Building a main 220/161/22 kV Substation (S/S) in
Building one 220 kV double circuit O.H.T.L. (13
km) long to connect the Gaza P/P (Gaza West Substation (S/S)) to the North
Building a main 220/22 Substation (S/S) in the Gaza
Building one 220 kV double circuit O.H.T.L. (32.4
km) long to connect the South Substation (S/S) to the North Substation
Reference is made to Attachment 1 and 2, a Map of
Gaza Strip with location of
plants and line routes and Single Line
Diagram of the proposed system
Provisions in the respective S/S control systems are
to be made for connection to a future DCC.
Preliminary tender documents for the whole
Transmission System above was already in 1996 prepared by Norconsult of Norway
and recently has been revised and completed 1/7/1999.
The final Project Documents have been delivered to
PEA at 1.7.1999. However, during project preparation it has been anticipated
that a first main implementation stage of the Transmission System will
be financed by a consessionary loan from Swedish International
Development Authority (Sida). Due to unexpected restrictions, imposed on Sida
budget by the Swedish Government during preparations for loan decision, the
possible available funds are limited to about half the amount required for the
originally intended first phase. In order to achieve at least an initial
backbone of a real transmission system, which can reasonably facilitate the
transmission of power from the new P/P to the distribution networks, it has
been necessary to reduce the Transmission Project to include only the
first three items ( I, II, III) of the above mentioned Transmission System to
form what so called the (First Stage).
The complete basic project: The budget estimation is as
West Substation at the Power Plant.
220 kV double circuit OH Lines 14.7 km to connect the
West (S/S) to the North (S/S).
220 kV double circuit OH Lines 32.4
km - to
connect the South (S/S) to the North (S/S).
Over Head (Engineering, Training etc.) 5%
Environmental Impact Analysis
(EIA) Study has been prepared by SwedPower and submitted to PEA. This Study
has been recently approved by the Palestinian Ministry of Environmental
Budget cost estimate and
Break Down Prices are indicated in attachment 3.
includes the following:
Building the one main 220/161/22 kV S/S in Gaza
Building one 220 kV double circuit OH Line (13 km)
to connect the Gaza P/P (Gaza West S/S) to the North S/S.
Implementation of the first Stage is in a very advanced
stage to be realised where,
As mentioned above the final tender documents were
submitted to PEA from Norconsult at 1.7.1999.
A short list of
Swedish Contractors was selected and they were invited for bidding to
the first stage of the project, the closure date was assigned to be
Tender opening has been done at Sida offices (
Stockholm, Sweden) at 22.09.1999 and there was only one Offer submitted by ABB
ABB Switchgear Offer has been evaluated at Swedpower
office (The swedish engineer for this Project stage) within the period from
22.09 to 05.10.1999.
The Evaluation report has been approved by Sida and
accordingly ABB Switchgear was invited to negotiate their offer at PEA office
at Palestine-Gaza on 27.10.1999.
The Contract with ABB
Switchgear is signed a 16/12/1999 and the commencement of the first stage of the first
phase of the Transmission System start with 20/1/
2000, and the Implementation period as per ABB offer is 12 months.
the first project implementation phase, with sharply cut investments
due to the Swedish Government budget restrictions, the costs for the new
reduced basic scope i.e. (the first stage) is as follows:
West Substation at the power plant
220 kV double circuit
T. Line, West to North S/S (5.9+8.8 km)
Training etc.) 5%
The Second Stage (
required to be financed):
represents the remaining items, i.e. (IV, V), of the above mentioned complete
Transmission System. This second stage includes:
Building a main 220/22 (S/S) in the Gaza
Building one 220 kV double circuit O.H.T.L. (32.4 km) long to connect
the South S/S to the North S/S.
is of great importance to have this second stage being implemented as soon as
possible, early before the commissioning of the first stage for the following
The reduced scope asked in present tender
invitations will improve current supply shortage and operational problems in
the Northern and central part of Gaza Strip. For the Southern part, it will
enable to improve the situation temporarily, but generally the supply
shortage will remain and becomes worse. Consequently, the South Substation
with connection lines are still urgently needed and PEA intends, without
delay, to find a solution for financing the postponed part of the original
basic scope of the transmission system i.e. the second stage. Our ambition
is to succeed in due time to order the implementation of this second stage
before the commissioning of the first stage.
To have more strong, efficint,
stable, reliable Transmission System which will be capable to transmit the
generated power, in an optimal method to the bulk supply points.
To secure Electrical Energy supply urgently needed
for the full operation of the infrastructure projects, like Gaza Airport (7
MVA), South Industrial Estate and the Free
Trade Zone (20-30 MVA) , Treatment Plant (7 MVA), Gaza European Hospital
(GEH) (2-3 MVA), Agriculture projects, ….. etc.
The North and West Substations Location is
relatively far from the bulk
supply points of the Gaza South, which is not efficient to be fed through
long 22kV Feeders
To create the possibility for future connection to
the Egyptian Transmission System.
For the second
stage, the budget cost estimate will be as follows:
South Substation with 2*60 MVA
Transformers & double Busbar + coupler
Second Busbar and Bus Coupler in the North
220 kV double circuit
O.H.Line (32.4 km)
Training etc.) 5%
Total cost (MUSD)
Gaza Strip is a
long-shaped narrow area surrounded by Israel from the east and north, by the
Mediterranean Sea from the west and by Egypt from the south. The population
is about 1 million capita.
The electric power
supply to Gaza Strip is coming from Israel via nine 22 kV overhead line
feeders, which are operated in a radial mode. There are more than 110,000
customers fed from those feeders. The 22 kV network of Gaza Strip is mainly
built of overhead lines and pole mounted transformers. The quality of the
power supply is very poor and the voltage to remote consumers may drop as
much as to about 50% from its nominal value. Most of the main feeders are
already loaded to their technical/thermal limits, which necessitates regular
load shedding. The total power supply losses are very high and in the range
the peace agreement, the Palestinian Energy Authority (PEA) was founded to
take charge of the power supply to the Palestine Autonomy areas and
development of the power supply systems. PEA then called RK&D to make an
extensive study on the Gaza and West Bank power systems and to propose both
present and future needs for development of such systems. Their final report
"Generation, Transmission and Distribution Master Plan” was
submitted in May 1996.
SwedPower was engaged by Sida to make an appraisal for provision of a power
plant in Gaza. In their report of May 1996 the urgency of additional power
sources was confirmed and recommended the first plant to be a 60 MW gas
Also in 1996 Norconsult was
engaged to prepare specifications with tender documents for the 220 kV
transmission system proposed in the Master Plan.
Sida engaged RK&D to make a review of the Master Plan with an assessment
study for the Transmission system. The conclusion of this report of January
1998 form basis for the solution proposed in this document.
Norconsult is again engaged by Sida to revise the tender documents. This has
been performed, and the final tender documents is submitted to PEA at June
Moreover, Sida has engaged
SwedPower to perform an Environmental Impact Analysis for the transmission
system. This has been achieved and the EIA report is submitted to PEA at
April 1999. Furthermore the EIA
study has been approved by the ministry of environmental affairs.
Contract for the implementation of the first stage is planed to be signed
with the ABB Switchgear at 16.Dec.1999, after which the commencement of this
phase will start 20/1/2000.
IPP consortium has been established for the power plant and letter of intent
is signed with the first two GT’s of 2x23 MW to be commissioned in second
half of year 2000, a second package of two GT’s in Oct/Nov the same year and the
last package of steam turbines in combined cycle in June 2001 to reach the
capacity of 140 MW. The PP project is now under implementation.
Country Development and
The Country development
policy is to build an independent, sustainable and reliable electric power
supply system for the Palestinian National Authority (PA). Responsible to
handle related duties is given to PEA. The first stage to reach the goals of
such a system is to plan and implement a Generation Plant, a Transmission
System, reinforcement and extension of the Distribution Networks and to
prepare for a future Dispatch Control Centre for Gaza Strip .
PEA is committed to provide the Palestinian citizens with reliable
electricity supplies, permitting the efficient long term development of the
sector and the economy as a whole, at affordable prices.
this purpose PEA has developed a strategy, the main components of which are:
Rehabilitation of existing networks and services
Separate policy and regulatory from the commercial functions of
power sector enterprises
Encouragement of private sector participation in sector operations
and development to consolidate transmission networks
Establish regional distribution utilities
Increase operating/technical efficiency
is made to Attachment 4, Letter of Sector Policy, signed by PEA and PA in
As described above PEA
called the consultant RK&D to make an extensive study and analysis of
Gaza and West Bank electric power systems and to identify and assess the
present and future needs of the system.
As mentioned in Sub-section
(2.1) above, the present situation for power supply to Gaza is far from
acceptable. The nine 22 kV OH lines from IEC (indicated in the overview map
(Attachment 1) are generally loaded up to or close to the thermal limits
during peak demand hours. Occasional disconnections due to this is
unavoidable despite intensive operational measures with regular load
shedding and shifting of loads between feeders. To enable higher utilisation
of existing feeder capacity, GEDCO has reinforced many limiting feeder
sections but is also installing new interconnections between some feeder
A result of the loading
limitations is extremely high load factors for the individual feeders, which
now range from 60 to 85 % with an average for the total supply of about 65 %
on a yearly basis compared to normal levels of below 50 % for unlimited
supply. This is also clear evidence of a large portion of the surpressed
load identified in the RK&D study. Further evidence is that GEDCO has
accumulated applications for connection of new transformers and
installations corresponding to at least 30 MW of load demand, which can not
yet be met.
is made to
Attachment 5, Present Supply Situation, summarising statistics of
disconnections and load shedding. It shows that supply on the 9 feeders, as
an average, is interrupted from more than once a week up till more than once
every day of the year.
shedding is necessary in some areas almost every day and in all areas
frequently during summer and winter peak periods. This means disconnection
of about 15 to 20 distribution substations/feeder for a few hours in the
worst case. Typical feeder voltage profiles show big and frequent variations
every day. Recordings included in
Attachment 5 represent the voltage profile
at feeder entrance to Gaza area.
1998 the total consumption was 599 GWh, the maximum peak demand 105 MW and
the load factor 65 %. Corresponding peak demand at 50 % load factor is 137
MW, i.e. indicating a surpressed peak demand of 32 MW, which is 5 MW less
than for the RK&D base figure for 1995. Now the 32 MW surpressed peak
load alone corresponds to 140 GWh of surpressed energy at a load factor of
50 %. Hence, the actual total present energy demand may be about 740 GWh.
It is logical to presume
that the surpressed peak load and energy demand will become real already in
the first three years after commissioning of the power plant and
transmission system i.e. during the years 2000 to 2002.
as the actual load growth from 1995 to date, despite the limiting network
capacity, rather well agree with the base forecast made by RK&D, it is
presumed that most probable growth rate is in the same range. This means an
energy demand of 1100 and 1560 GWh respectively for the years 2005 and 2010.
Corresponding peak power demand will reach to about 220 and 310 MW
is made to
Attachment 6, Load Forecast Summary, which show current forecast
figures in comparison to RK&D Base, Low and High forecast levels.
Copy of the RK&D
report volume 5, "Transmission Master Plan", was concluded in May
1996 and is handed over to Sida.
of Target Groups/Analysis of Participants
refer to sub-section (2.3) above.
target groups for this project is the entire Palestine society with all of
it's inhabitants, public and private institutions, companies and entities
living and acting in the Gaza Strip, who will all benefit from the commodity
of sufficient and reliable electric power supply.
participants beside PA and PEA are :
The public entities emerging from PEA to take charge of the
electric power transmission, distribution and supply in Gaza.
Palestine Transmission Company Ltd (PETL, to be established) and
Gaza Electricity Distribution Company (GEDCO).
The Palestine Electric Company (PEC, the IPP), Enron/ABB (the main
power plant supplier) and their sub-suppliers, local and international
consultants, contractors and suppliers to be engaged in the implementation
of the power plant.
The PEA transmission project organisation and their suppliers,
local and international consultants, contractors and suppliers to be
engaged in the implementation of the transmission system.
Authorities and public institutions effected by or engaged in the
implementation of the power plant and transmission system.
Beside the parties directly
engaged in project implementation, many suppliers of various services in the
Gaza Strip will be indirectly engaged and benefit from the project in
providing transport, accommodation, material, consumables etc.
Relevant to the Project
refer to sub-section (2.2) above Country and Sector Policies.
the quality and reliability of the system and equipment the policy of PEA is
to use international recognised principles and standards as a guideline,
e.g. IEC standards should be applied for the power system, auxiliary system
the environmental impact the World Bank guidelines and international
practice should be recognised beside domestic regulations.
Volume 5 of "Transmission
Master Plan" by RK&D
of May 1996
Appraisal report by SwedPower of May 1996
Tender Documents for North and South 220/22 kV main Substations by
Norconsult of July 1996. (revision in progress)
Tender documents (provisional) for 220 kV Transmission lines by
Norconsult of July 1996 (revision in progress).
Assessment study by RK&D of Jan 1998.
Environmental Impact Analysis by SwedPower of April 1999.
IVO Sector Study .
ENEL Study for a Regional Interconnection Transmission System .
PA Sector Policy (enclosed).
objectives of the project are:
To build an independent, sustainable and reliable electric power
supply system for the Gaza Strip with provision for possible future
extension and integration with a regional HV power grid.
To assure an electric power supply service to the consumers within
pre-defined international quality levels at affordable prices.
To reduce and minimise the electric power losses.
To help developing the Palestinian economy by facilitating a
reliable electric service to the industrial and agricultural zones as well
as to any other business and service activities in the Gaza Strip.
The main specific
project objectives are:
To build an optimal, technically compliant and reliable
Transmission System to transmit the power generated from Gaza Power Plant
to bulk supply points in the North and South districts.
The Transmission System should be capable of handling all
reasonable Generation/Transmission plant disturbances.
Besides this, the system should be capable of transmitting the
power within a defined quality criteria framework.
The Transmission System should cater for future power transfer to
the West Bank by 220kv O.H.L.
The Transmission System should facilitate regional interconnection
with neighbouring countries (a key link of the Egypt, Jordan, and
Palestine interconnection prospect, studied by EU).
The immediate and
long term expected project results to be achieved are:
A sustainable, reliable and stable and less dependant electric
Improved quality of electric power supply to the consumers.
Reduced electric power losses.
Extended and sufficient system capacities to meet suppressed loads
and forecasted future load demand at reasonable costs.
Provision for future connection to the 220 kV Egyptian system in
the south and to the 220 kV West bank system in the north-east
The main physical
project activities, described more to detailed in sub-section 5.3, are:
Building a HV substation attached to the Power Plant to feed the
surrounding area and to connect the Power Plant step-up transformers the
HV transmission lines for transmission of power to the other, below
mentioned, bulk supply points.
Building HV transmission lines to connect the above mentioned new
power generating plant with bulk supply points.
Building HV substations in each of the North and
South Districts to become bulk supply points from where the power will be
distributed to the consumers.
In the first limited implementation stage it will
not be possible to build the South S/S with connecting line. We hope that
this can be realised in a second stage possibly as soon as during the year
2000 to 2001.
Simultaneous secondary activities to be carried out by GEDCO, i.e.
to build connection lines to the distribution networks are summarised in
AND ASSUMPTIONS RELATED TO PROJECT
Factors Affecting the Implementation
The main factor that may affect the
implementation of the project is the possibility of closing the borders by
Israel, which will delay the shipments and supporting services. However, the
planning of a power supply system is communicated with the Israeli
Government and evidence of the Israeli government acceptance of the power
system development is given in a letter to the PEC.
Assessment of Risks
are certain political risks related to the ongoing peace process, which may
have some influence on the realisation of the project. There is, however,
presently no indication of such influence on this project. With the
acceptance from Israeli Authorities referred to in sub-section (4.1) the
risk is deemed small and should be further secured through current power
exchange communication between PEA and the IEC .
The inclusion of 161 kV windings in the North S/S transformers has meant a
substantial positive injection to the PEA-IEC contacts.
for the success of the project is that the Power Plant will be ready for
operation at about the same time as the Transmission System. Since an IPP is
already established to build and operate the Power Plant and since moreover
the first down payment for the plant is made, this risk now seems
negligible. Instead this risk is rather reversely directed in that the
implementation of the system will have to be rather compressed to enable
transmission/distribution of power from the plant upon commissioning of the
first gas turbine units.
the proposed intended basic system configuration indicated in enclosed
Budget Cost Estimate, PEA will have access to a well furnished and flexible
system with a capacity and reliability that could reasonably be expected and
corresponding to international standards. There will be sufficient reserve
load capacity in transformers as well as lines and switching facilities for
different operational situations during the planning period including the
power plant phase 2 expansion to 280 MW . Hence, there are no obvious technical risks of the
project, but one condition to be met by PEA/GEDCO is, that the successive
addition of connections to the distribution networks will correspond to the
increased load demand.
The risk of insufficient
capability of PEA to manage the operation of the system, will be met by
capacity building efforts during project implementation and support during
the first years of operation.
it should be noted that the late decision by the Swedish Government to
reduce funding of the first implementation stage to about half the planned
investment, will also mean to impose additional project risks:
The necessary alternative financing of postponed investments may be
difficult and time consuming to find for PEA and consequently cause
further supply problems until the delayed implementation can be made. In
any case alternative funding is likely to be less favourable than the lost
option. PEA is however optimistic about the possibility to raise required
funs in due time.
Postponing the South S/S will in the meantime cause reduced supply
capacity and quality to the area and impose some temporary reinforcement
actions to limit the consequences.
rejected local solutions with alternative medium voltage transmission have
been considered also in the studies performed by RK&D and SwedPower.
In the present situation with
confirmed surpressed load demand and the power plant implementation is
contracted, which justifies the conclusions made in these studies, it is
deemed logical to confirm acceptance of these recommendations.
implementation will mainly be carried out as follows:
HV Substations and the HV Transmission Lines will be tendered as one
common package and turn-key type of contract according to FEDERATION
INTERNATIONALE DES INGENIEURS-CONSEILS (FIDIC) conditions should be
The supervision and management organisation, directed by PEA for
the project implementation, will be as shown in the Project Organisation
Attachment 7. PEA has made a separate request to Sida for support
to establish and facilitate this organisation.
A consulting firm should be engaged by PEA/ Financier to act as
Engineer for the project, which services should be covered by the project
Capacity need for
refer to the Project Organisation Chart ,
Attachment 7 , with enclosed Teams
Task Document, and to the separate request by PEA for reinforcement of
it’s capacity during implementation as mentioned in sub-section (5.1).
has until today very limited experience of planning, implementation,
operation and maintenance of transmission systems. Related competence is
with a few specialists of the PEA staff only. Hence, it is necessary during
the implementation stage to provide appropriate and extensive training in
particular in system operation and maintenance.
experience in project preparation and implementation can possibly be gained
in on-job-training through participation in all related activities.
Provision should be given to PEA to allocate required staff to participate
in project implementation and to be directly engaged and participate in the
and maintenance skills will require special training included as part of
both construction/supplier contracts and consultant/engineering contracts.
The latter training should have special focus on appropriate and best
utilisation of the system in a system owner perspective.
tentative required organisation to take charge of the Transmission System
upon commissioning is outlined in the Operation/Management Organisation
Chart , enclosed as
Attachment 8. Only few of present PEA staff has suitable
competence and experience for the various duties of this organisation, which
has to be established during implementation of the project. Tentatively it
should be developed based on the Project Implementation Team. Recruitment of
new personnel and purchase of facilities for the organisation will be
It is particularly important
to engage specialists for the top management functions at an early stage.
Provision for this will be included in the special request mentioned above
(in the 1st section of this sub-section).
Phasing Out, End of Project
The implementation of the Transmission
System should run in parallel with the implementation schedule of the Power
Plant as will the extension and rehabilitation of the Distribution System.
The generating plant is scheduled to be
completed in three steps, where the first step includes two GT units of 23
MW capacity each, the second step includes an equal package and the third
step comprises the addition of two 47 MW steam turbine units in combined
cycle with the GT's. The 1st step is planned for commissioning in second
half of year 2000,
the 2nd step six months later, Oct/Nov 2000, and the 3rd step in June year
A rehabilitation program for
the existing 22 kV system as recommended by RK&D has been performed. The
works were carried out by PEA financed and supervised by NORAD/Norconsult.
This program was scheduled for March 1997, and is presently now continued by
Gaza Electric Distribution Company (GEDCO), established by PEA to take over
and be in charge of the 22 kV and LV distribution systems in Gaza.
PEA/GEDCO is presently
planning and preparing the final design of the 22 kV connections to the new HV
substations to be implemented by themselves. As for the main distribution
system expansion and reinforcement to suit the requirements of the
Transmission System, it is estimated to be completed by PEA/GEDCO to harmonise
with the commissioning of the new bulk supply substations. A summary of the
major activities established in a Master Plan for the reinforcement and
extensions of the distribution system is given in
investments in the Master Plan for distribution networks comprise the
following components to meet the capacity of the complete basic transmission
Connection feeders from the new bulk supply points, the transmission
S/S, to the existing networks. The plan includes 10 feeders from the West
S/S, 10 feeders from the North S/S and 10 feeders from the South S/S.
The maximum total load capacity of these
feeder lines will exceed 100 MW for each
Reinforcement of existing networks for adaptation to the new power
sources will mainly be made
through exchange of conductors for the line sections next to connection
points of the new feeders.
The work includes a total line lengths of about 22.15 km of UG cables
and 54.5 km of OH lines.
The total cost for the connection lines and reinforcement is
estimated to about 9 MUSD for which a financing solution is being discussed
with other donors.
The implementation will be executed to harmonise
with the commissioning of the respective S/S, i.e. with first priority to
the West S/S connections in second half of year 2000, secondly to the North S/S in
January of 2000 and last to the South S/S.
Transmission System - Substations :
The final preparations for the Transmission System is in progress
including, as above mentioned, revision of tender documents, study of the
environmental impact, acquisition of land, power purchase agreements etc.
Tendering and contract procedures have been
handled during Oct/Nov and the contract signing for the first stage
implementation is to be in 16.Dec.1999.
The completion time for the West 220/22 kV S/S at the power plant (to
be given first priority) may possibly be less than 10 months from a letter of
intent. Also this may not be short enough to meet the time schedule of the
Power Plant, which should require extraordinary efforts by the Contractor.
The North S/S may correspondingly be completed within 12 months upon
letter of intent and consequently require special efforts, which all has to
be stressed in the tender documents.
The late decision by the
Swedish Government to reduce project budget for the first implementation
stage means that the South S/S has to be postponed to a second stage.
Transmission System - HV Lines:
The completion time for transmission lines is max.
12 months upon contract signing.
First priority has to be given to the connection of
the North S/S to the West S/S, which should be commissioned within 12 months
from contract signing.
The connection line from the North S/S to the South
S/S has to be postponed to the second stage.
Budget and financing
The budget for the basic system concept is given in sub-section (1.2)
with Break Down figures in the Budget Cost Estimate
(Attachment 3). The
budget estimates include both the calculated costs for the originally
planned first implementation phase, for the reduced scope (first stage),
resulting from the budget cut imposed by above mentioned Swedish Government
decision and for the postponed second stage for which PEA is trying to find
Financing of the project first stage is to be
structured and agreed between PA, PEA and Sida. This is planed to be
achieved and the loan agreement is to be signed at 16.Dec.1999 of the second
stage of the transmission system.
It is pesumed that PEA will fined other sources to
finance the remaining second stage.
SOUND AND SUSTAINABLE DEVELOPMENT
Legislation to Support the Project
Please refer to sub-sections (2.1) and
(2.2) above regarding country and sector policy.
Legal system of the Palestine Autonomy is under development and for areas
not yet concluded, international practice should be applied.
of Technology in Relation to Prevailing Conditions
basic choice of technology for the plant equipment to be included in this
project is in conformance with international standards specified by IEC.
the transmission system is a must for Gaza Strip, the OH Transmission Line
route was selected to pass mostly in non populated and non or partly
utilised areas, that is the security zone near Israeli borders.
for the Substations, the out-door type was selected due to economical
reasons. The substations are located on public-use lands. For more details
on the selection of technical issues, please refer to RK&D reports and
institutional capacity building
realisation of this large project offers unique opportunities for on-job-
training to serve as management and institutional capacity building. Please
refer to sub-section (5.2) above.
project execution management team, indicated on the attached organisation
chart, will be appointed with the aim that they will carry key positions for
future management of the transmission system operation and maintenance.
Strengthening this team for adaptation to these future needs will be done as
early as possible during implementation to utilise the on-job-training
potential of the project.
project management organisation should successively be transformed into a
commercial operation organisation by the time of system commissioning. As
mentioned in sub-section (5.1) a special request will be made for support to
the first establishment of this organisation
secure that lack of management experience will not cause serious operational
and maintenance problems during the learning process of the local
organisation, two resident experienced system operation and maintenance
specialists should be allocated to support the project under a separate
consultancy contract for the first year of operation.
purpose of an Environmental Impact Analysis (EIA) is to evaluate the
potential environmental impacts that transmission lines and substations
might cause. The environmental assessment was finalised in early April 1999.
The study focus on the following points:
Occupation of space, i.e. for S/S sites and right-of-way for
Impact of requirements for land.
Impact on vegetation, forests and important resources.
Impact on cultural, archaeological and grave sites.
Electric and magnetic field effects.
Audible noise levels.
Analysis of influence on population behaviour, human settlement,
Establishment of possible mitigation measures that has to be taken
due to impact of the project and estimation of the cost of such measures.
the Gaza Strip, effect on above points are deemed minor since most of the
transmission line is passing non populated areas, that is the security zone
along the Israeli border. Besides, the site for the substations are selected
to be on public use land.
reference to the previous acceptance by Sida to finance the EIA, they have
assigned SwedPower consultants to perform the study according to terms of
reference are prepared by PEA. Approval of the EIA is conditional for
is expected that the rate of increase of population will drop with the
development of the economy as mentioned in sub-section (3.1) above. Such a
drop will help to improve the standard of living of the people in general
and so will expected increased business and employment opportunities.
Experience show that society development generated by this kind of project
will generally promote positive changes including also gender equality.
Financial and Economic
or rather the business entities to be in charge of the power supply and
systems operation (PETL and GEDCO), is going to buy energy primarily from
the PEC, owner of the power plant, and sell the same to the consumers with
marginal profit to cover its expenditure for such as operation, maintenance
costs .....etc. of the transmission and distribution systems. The power
demand not covered by the IPP production will initially have to be imported
from IEC on the existing 22 kV connections. For the following stages it is
planned to extend the 220 kV system in the south into Sinai enable import
from EEA and to the IEC 161 kV system
to enable further transfer of power to the West Bank and/or increased power
exchange with IEC.
will all serve as much improved opportunities for financial and economic
sustainability with alternative negotiable sources and more independent
conclusions made are that a tariff margin of less than 0.01 USD is needed to
cover the financial and running costs of the transmission system.
measurable and verifiable indicators
of industrial & agricultural zones and growth of small businesses.
of Ministries of Industry, Agriculture.
reliable and secured electric services with improved quality.
of service to all sectors.
+6% from nominal.
+0.5 from nominal.
security of supply.
data and measurements of dispatch centre or substation control units.
suppressed demand will be fed.
security and quality of supply will be verified.
from system operation regarding:
customers and energy supply
Development of PEA business
and institutional competence and capacity
32.4 Km of Transmission lines.
220/22 kV substation.
220 kV double line
14.7 km to connect
West s/s to North s/s:
220 kv double line
32.4 km to connect
South s/s to North s/s:
and development of PEA organisation
Discussions with IEC to get
mutual understanding of new supply situation
of PEA to manage the project