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Israel’s Prime Minister’s Office yesterday gave its approval for the construction of the first ever Palestinian power station in the West Bank, which is set for construction near the city of Jenin.

The Palestine Investment Fund approached the Prime Minister’s Office for approval, via the Coordinator for Government Activities in the Territories (COGAT), the Israeli body which oversees Palestinian movement and activity within the West Bank. According to YNet, private investors in the project include the Bank of Palestine, Padico, an investment holding group owned by Palestinian billionaire Munib Al-Masri, and others. The head of the Palestine Energy Authority, Omar Kittaneh, told Haaretz that a tender will soon be published for constructing the power station at an estimated cost of £410 million. YNet says that they are open to a bid from the Israel Electric Corporation (IEC).

The power station will reportedly take around four years to construct and will largely serve the Palestinian population of the northern West Bank. The IEC currently meets the Palestinian energy demand, but the new power station will be a cheaper way for the Palestinians to supply power and is likely to create around one thousand new jobs and additional tax revenue for the Palestinian Authority (PA).

The new power station will be fuelled by natural gas from Israel’s offshore Leviathan natural gas field. However, due to continuing uncertainty over the conditions and regulations surrounding Israel’s natural gas industry, the new Palestinian power station will likely initially operate on diesel fuel. YNet says that in the long-term, the new power station is supposed to receive fuel from a reservoir off the Gaza coast, owned by the PA.

Meanwhile, Gaza’s sole power station has reportedly halted operation, due to a shortage of fuel, owing largely to a tax dispute between the ruling Hamas authority and the PA. However, Gaza’s energy needs are also provided for by Israel and Egypt.