Power crisis in Gaza as EU stops oil funding

MIDDLE EAST:Gaza's sole power plant shut down its fourth generator yesterday when fuel did not arrive to maintain operations. The European Union, which normally pays for fuel, notified the Israeli supplier several days ago that it was reviewing financial arrangements for the power plant.

Israel halted shipments through the Nahal Oz terminal last Thursday, citing "security reasons". The other three generators were closed down on Friday, causing outages at 400,000 Gaza households and businesses.

The power plant's chief executive, Rafik Malikha, urged those responsible to "end this crisis situation in Gaza now" and warned that the generators could be damaged by the shutdown.

The plant provides 30 per cent of the electricity consumed by the 1.4 million Palestinians living in the Strip, while Israel supplies 60 per cent and Egypt 10 per cent.

While the flow of petrol and diesel for vehicles resumed yesterday morning, the type of diesel needed for the power station was not delivered. The Israeli daily Haaretz reported that the Israeli firm that provides the fuel had asked the EU if the decision to halt financing shipments of fuel was still in effect and was told it was.

"Fuel supplies will resume if and when the European Union or another credible source notifies us that it will guarantee payment for the power station's fuel," the company stated. An EU diplomat said a decision could be taken today. The alternative is the Palestinian Authority (PA) which pays for power received from Israel.

There is concern in Gaza that the EU is co-operating with caretaker premier Salam Fayad who is orchestrating an economic squeeze on Gaza with the aim of forcing Hamas to meet his conditions for reconciliation.

Mr Fayad last week recommended to Palestinian president Mahmoud Abbas that he should dismiss scores of Hamas-affiliated civil servants hired last spring after the formation of the national unity government by Hamas and Fatah.

Mr Abbas has been ruling by decree since Hamas seized control of Gaza in mid-June, although Palestinian lawmakers and legal experts say his actions are violations of the PA's constitution.

Arab analysts argue that the dismissals and denial of fuel to the Gaza power plant will exacerbate the divide between the Fatah-ruled West Bank and Hamas-run Gaza. In an editorial, the Jordan Times warned, "Palestinian divisions continue to deepen and only Palestinians will pay the price," particularly those in the Gaza strip which "just gets poorer".