The Cabinet approved an Incentives package contract to encourage investment in the use of alternative and renewable energy technologies
Ramallah, July 18, 2017: The Palestinian council of ministers approved an Incentive package contract to encourage investment in the use of alternative and renewable energy technologies, which was endorsed by PIPAs’ Board of Directors pursuant to the provisions of the Palestinian Investment Encouragement Law No. (1) of year 1998 and its amendments, The approval of the incentive package contract is a clear interpretation of the Palestinian government vision and its plans and commitments toward maintaining a healthy investment environment to attract foreign, Diaspora and expatriate investments in accordance with PIPAs’ strategic framework, which integrate with the National Policy Agenda 17-22, Local development and Sustainable Development Goals.
In view of the fact that energy sources are a major challenge in Palestine as we import around 90% of energy, a number of field surveys have been implemented through After Care Program, to examine the main obstacles facing the expansion of existing investments or attracting new investments by proposing policies that respond to the needs of providing an appropriate and competitive investment climate. And here PIPA assure that the energy challenge has become an opportunity and a viable investment opportunity.
The Incentive Package Contracts are considered to be the most competitive instruments in the Law. These contracts provide flexibility to PIPA to issue facilities that serve a certain sector, geographic location or a strategic project for the purpose of stimulating investment and increase performance in order to create jobs through production growth, increase export and transfer of technologies.
In line with the energy sector strategy and goal to generate 130 MW /s by 2020 from alternative energy sources, the incentive package contract is expected to stimulate investments to generate 30-40 MW /s in less than two years and to create 5,800 direct jobs through targeting Some 800 new or existing facilities, and the total investments expected to reach US $ 50 million, and to generate revenues estimated to be US $ 3 million in form of value added tax and investment registration fees.
It is worth mentioning that PIPAs’ BoD accredited as a representation of public and private sector given that the private sector is represented by 40%. The Council is chaired by HE Abeer Odeh, Minister of National Economy. And it is worth mentioning that PIPAs’ BoD in process of endorsing new Incentive Package contracts in response to Investment needs and strategic plans, to attract new foreign investments and this efforts supported by several available tools and programs whether from the public or private sector institutions or international institutions, and here we would like to extend our gratitude but not limited to DFID, EU, PMDP and USAID
The Palestinian Investment Promotion Agency (PIPA) is the practical expression of Palestine's vision and policy in encouraging the private sector and contributing to maintain and an appropriate investment environment, through providing local and foreign investors with services through the one stop shop and promoting the partnership and cooperation between the public and private sectors, and providing all needed information to assist investor to make the decision to invest and start businessman in Palestine, including the assistance in obtaining all the necessary licenses, and available investment opportunities and available sources of funding, and To maintain the relationship with investors through the After Care program under the guidance of PIPAs’ BoD chairperson H.E. Abeer Oudeh Minister of National Economy to achieve the goals of the Palestinian government headed by Prime Minister Dr. Rami Hamdallah , and the vision of H.E. Mr. President Mahmoud Abbas.