The 'Israeli' Electric Corporation was the only source of electricity to the Palestinian Territories up to the time when the Palestine Electric Company (PEC) was established in 1999. PEC operates under the mandate of being the sole provider of electricity to the Gaza Strip through an Implementation Agreement with the Palestinian National Authority and a Purchase Agreement with the Palestinian Energy Authority.

PEC, which was formed in Gaza under the laws of Palestine to develop, own and operate the first IPP in the Palestinian Territories, is a public owned company whereby the public shareholders represent 33% and the private shareholders 67%.

Having managed to gather a group of renowned Palestinian sponsors, the Palestine Electric Company (Holding) company was formed. Together with the support of the Palestine National Authority (PNA), PEC (Holding) managed to get an International company on board, which eventually developed into the establishment of the Palestine Electric Public Company.

Funding for the project was based on private and public shareholders' equity and Arab Bank financing. Gaza Power Generating Company (GPGC) was established as the operating company under which the Gaza Power Plant exists.

PEC owns more than 99.9% of the outstanding shares of GPGC. The estimated project value for GPGC is $150 M. On 15 March 2004, GPGC started commercial operation generating 140MW. 67% of the shares of the company are owned by prominent Palestinian and Arab operating companies and institutional investors (PEC PLC), and the public owns the remaining 33% of the shares of the company.

Major Shareholders: PADICO: Palestinian Development and Investment Company PCSC: Palestinian Commercial Services Company APIC: Arab Palestinian Investment Company AB: Arab Bank CCC: Consolidated Contractors Company Morganti Development UNIPAL Al-Said Public Shareholders