A letter sent by the Coalition for Accountability and Integrity (AMAN) to Palestinian Prime Minister, Dr. Rami Hamdallah, addressed the issue of carbon fuels and included a reminder of the accountability hearing held by AMAN on 10/02/2014. During that hearing, participants were unanimous about the Gas Purchase Agreement signed between the Palestine Power Generation Co. plc (PPGC) and Delk Company–Nobel, that there is a lack of legal and institutional references to regulate the energy sector. Participants also agreed that the government’s role should be limited to the conventions held by the Palestinian private sector and others to promote a favorable investment environment for the private sector that balances the rights of the public treasury and the Palestinian National Authority (PNA) with the rights of Palestinian consumers, without that the government acting as a party or guarantor in those conventions.
AMAN reiterated its demand for immediate steps to amend the legislative framework governing this sector in light of the concerns raised about chaos in the General Petroleum Corporation. Carbon fuels constitute a vital sector of the economy on which various activities and productive sectors rely, and any crisis or mismanagement of this sector will lead to the paralysis of economic activities and public services. AMAN stressed the need to pass a dedicated Palestinian law, with the possibility of benefiting from the reform experiences in the power sector, by separating policy-makers from the executing body and the controlled body.
(1)Determining procedures for carbon fuels sector management, either by adopting a centralized management style by one of the ministries, as at present, or decentralized management by an independent public body for petroleum in consultation and discussion with the various relevant authorities; (2)Limiting all carbon fuel related legislation and reviewing the legislation with the assistance of economists, lawyers, representatives of gas stations owners, ministries and related institutions; (3)Development of regulations to ensure the existence of internal and external controls in the General Petroleum Corporation; (4) Compelling the various stakeholders to implement these regulations.
