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Israel-Palestine-Jordan
U.S. to pay $48 million to cover damages to Gaza power station???
2006-07-01
United States officials said they expect that U.S. funds will be used to pay for the damages caused by an Israel Air Force strike Tuesday on a Palestinian power station in the Gaza Strip. The power station was insured by a U.S. government agency, according to The Boston Globe.

The Foreign and Defense Ministry departments that oversee foreign relations were unaware of the decision to target civilian facilities in the Strip, or the decision to attack the power station. Because of this, officials did not know that the station was insured by a U.S. government agency. Israel did not inform the U.S. prior to attacking the power station.

The power station in Gaza was built over a period of five years, at a cost of $150 million. In 1999, the Enron Corporation, along with Palestinian businessman Said Khoury, began working on the project. In 2000, Khoury's Morganti Group purchased Enron's share of the project.

The power station began operating in 2002, reaching full commercial capacity in 2004. The owners of the power station insured it, through the Overseas Private Investment Corporation, for a sum of $48 million due to "political risks." OPIC is a U.S. government authority that insures U.S. investments in developing markets.

A spokesman for the agency said the insurance purchased by the Morganti Group covers instances of political violence, which include wars and acts of terror.

The plant supplies electricity to some 860,000 people.
However, this comment on the Haaretz site suggests the article is not correct.:
Not accurate, Congress barred Hamas infrastructure payments
Name: Dr. L. Brnd
City: San Diego State: USA

Check your facts again. Not only do I doubt that "acts of war" are covered in the policy, and acts of the insured in precipitating the damage are certainly not covered (Hamas conduct directly caused the attack; it wasn`t incidental damage due to war). More importantly, recent US law passed by Congress forbids US government funds being used for any infrastructure payments in PA territory; this would supercede any prior obligation to fund, build or rebuild the power plant. Further, this is minor, petroleum-fueled back-up plant, most of the Gaza electricity comes from Israel, which Hamas can expect to stop forever if Gilad is harmed. Likewise, any replacement of the massive turbines for the destroyed plant (regardless who pays) can only be delivered through Israel`s Ashkelon port and Erez crossing -- and that will NEVER happen if Gilad is harmed. Israel is under no obligation to make Ashkelon available to Hamas. So...the 48 mil is irrelevant. Hamas is screwed either way if they harm Gilad
Posted by:lotp

#8  The $48M is probably the replacement cost and does not include the other $102M siphoned off from the original $150M construction by various Palestinian political thieves for permits and expert consultation.
Posted by: RWV   2006-07-01 20:55  

#7  I hope the U.S. hires my HMO to process this.

Now there's an RB original line.
Posted by: 6   2006-07-01 19:17  

#6  tw, Boris' language problems were QUITE specific. ;-)
Posted by: lotp   2006-07-01 17:12  

#5  It was the stress of the situation, surely, lotp. My German deteriorated dreadfully that time the police officer didn't like how I drove through the neighborhood... (I don't understand it -- I wasn't going much above the speed limit, and I'd come to a rolling stop at the sign)
Posted by: trailing wife   2006-07-01 16:58  

#4  ;-)

Years ago I worked with a Russian emigre consultant. He had dealing with bureaucracy down to a science -- would show up for IRS audits with all his receipts in a shoebox, his English was suddenly much poorer, he would tremble and ask if he was in trouble - he was from Soviet Union, no trouble please .... quite good at it, he was.
Posted by: lotp   2006-07-01 16:46  

#3  I hope the U.S. hires my HMO to process this. They should be able to delay payment almost forever. First, they send a "Coordination of Benefits Information Request" to the Palestinians requiring response within ten days, but they don't actually mail it until day 20. Then they lose it when it is returned "late". Then, when Abbas manages to get through the phone menu maze, which is unlikely, they keep Abbas on hold for a few years. Then they tell him it's "in processing" which is better than "the check is in the mail" because that would be a lie. Then, the next time he calls, they tell him not to be so impatient -- it's still in processing. Repeat until he files an appeal. Require two months to process the appeal, then tell him he has won and the payment is -- you guessed it! -- in processing. If all else fails, send him a check that is only valid for 90 days -- and backdate it 91 days.
Posted by: Darrell   2006-07-01 16:40  

#2  OPIC regularly insures some major projects built overseas with US aid. In this case, the $48 million would be the designated amount to be paid of the power plant was damaged due to various "political risks".

However, see the comment added above to the article, which says Haaretz is wrong and this damage won't be covered.
Posted by: lotp   2006-07-01 16:27  

#1  So the $48million is the insurance deductible? I'm very confused.
Posted by: trailing wife   2006-07-01 16:26  

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