Enron trying to sell its share of Gaza power plant
Ran Dagoni, Washington
24.01.2002 15:33
The Enron energy concern, which is in bankruptcy proceedings, is trying to find a buyer for its holdings in the Palestinian power plant in Gaza, in order to raise cash. "Globes" heard the report from sources close to Enron and sources linked to the power plant.
Sources inform "Globes" that Enron has offered to sell its share of the power plant to concerns both in the Middle East and elsewhere, including Israeli concerns. The company also approached the Palestine Electric Company (PEC), its partner in the project. As far as is known, the contacts with the Israeli concerns were fruitless.
The PEC could not be reached for comment on the matter.
At Enron headquarters in Houston yesterday, company spokeswoman Habiba Ewing said, "As a matter of policy, Enron does not respond to questions or reports concerning its plans to sell assets, particularly not in the current situation." Ewing nonetheless noted that Enron continues to control its holdings in the Gaza power plant at this point.
A Palestinian source in the project's administration told "Globes" that the project was now encountering financing difficulties for the first time, as a result of Enron's trouble. The source added that Enron would sell its share of the plant, and the decision on the matter would have to be made soon, but such a step would not be due to problems with the project itself.
Predictions are that Enron will have difficulty selling its share of the Palestinian power plant, due to the tension between Israel and the Palestinians. It may even prove to be an impossible mission under the current circumstances of the intifada. An expert source said, "It is hard to see how Enron can find a buyer for property that may be attacked by the Israel Air Force."
The source added that the fears of potential buyers would only increase now, following the bombing of infrastructure targets, such as the Palestinian broadcasting station. It should be kept in mind that Israel previously bombed the Beirut power plant, causing widespread power blackouts in Lebanon.
Wadji Odeh of the US Commercial Service at the US embassy in Tel Aviv said that construction of the power plant had been completed.
The Palestinians believe that Israel will not dare to damage the property of a US company, particularly a major concern like Enron, known for its good Washington connections.
Published by Israel's Business Arena on January 24, 2002
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