Gas for Gaza G 4 G Gaza Central

Gas for Gaza (G 4 G) Gaza Central Desalination Plant & Associated Works Information Session April 2019 Confidential – Not for Distribution

Executive Summary - • Gas for Gaza (G 4 G) project - Gaza’s connection to the Israeli natural gas network • G 4 G is implemented through the Office of the Quartet (OQ) - led Task Force with full support of the PA and the Go. I • The Dutch Government - critical funding and support since late 2015, including recently the funding decision for the Detailed Design for both Israel and Gaza • EU officially commenced supporting the project in 2018 • G 4 G is the central solution to Gaza’s energy deficit and basis for economic development • G 4 G will contribute to ensure the long term viability of key water infrastructure projects, including the Gaza Central Desalination Plant • G 4 G - affordable, reliable and sustainable fuel supply significant increase in domestic electricity generation on a cost-efficient basis • Significant progress has been made with G 4 G since its launch in 2015: • • completion of legal, technical & commercial feasibility studies approval of pipeline route in Israel, statutory planning process nearly complete for IL, pipeline detailed design to commence shortly Gaza Impact Assessment Study nearly complete significant progress has been made with the project’s commercial structure 2

Natural gas will significantly increase Gaza’s energy supply 900 800 796 236 Electricity Demanded (MW) 700 52 600 558 496 473 582 654 675 100 517 40 50 400 220 300 560 220 200 14 290 100 0 120 140 30 2018 2022 Axis Title 2023 Diesel Generation Gas Generation Israel Electricity Demand – Low Case Egypt Other sources Renewables Electricity Demand – High Case 2030 (Israel, Egypt, Renewables) 3

Technical feasibility studies identified the pipeline route, cost and engineering requirements • Technical feasibility studies identified the pipeline route in Gaza and Israel • In September 2016, the ‘East West Route’ (E-W) was approved by the Government of Israel • The pipeline route is approximately 44 km • ~40 km in Israel • ~4 km in Gaza • The approximate cost of the pipeline is ~$80 MUSD. • ~$65 mm in Israel • ~$15 mm in Gaza 4

G 4 G project has advanced from conceptual to implementation phase, supported by the Task Force, since it was launched in 2014 G 4 G initiated by the OQ, with the encouragement of the PA and Go. I Statutory planning process for the pipeline in Israel commences Dutch Government commences support to the G 4 G Task Force 2014 2015 Go. I announces official support for the project OQ mandated by Palestinian Prime Minister to lead the G 4 G Task Force to facilitate project implementation Start of detailed design for Israel and Gaza Commercial and legal feasibility studies concluded 2016 2017 Go. I announces approval of pipeline route 2018 EU announces formal support to the project High-level impact assessment study concluded 2020 2019 Environmental impact assessment (Gaza) PA approval of pipeline route (Gaza side) Technical feasibility studies concluded Start of EPC phase (Gaza and Israel) Commercial framework identified and negotiations commence 2021 2022/3 Start of GPP conversion from diesel to gas G 4 G PIPELINE COMMENCES OPERATION 5

G 4 G Project has gathered broad political, financial and technical support from a wide range of stakeholders Rami Hamdallah, Prime Minister of Palestine: Statements at AHLC 2016 2018, as conveyed by PA reps to the G 4 G TF, and at the Palestinian Cabinet Meeting 6 February 2018, where the Prime Minister called upon the international community to pledge funding for the implementation of several viable development projects in Gaza including G 4 G and the GCDP. Zafer Milhem, Chairman of the Energy Authority PENRA Gaza Strip Power Sector Short & Med Term Development Plan 2017, 10 January 2018 Benjamin Netanyahu, Prime Minister of Israel: “We want to help the population of Gaza and the first step is to improve the supply of energy and water…including laying a gas pipeline” (State visit to the Netherlands, 2016) Hon. Tzachi Hanegbi, Minister for Regional Cooperation, AHLC (2016, 2018): “It is necessary to complete the Gas for Gaza program (…) It has the potential to double Gaza’s electricity supply in the near term and as much as quadruple it in the future” Karel J. G. van Oosterom, Permanent Representative of the Kingdom of the Netherlands to the United Nations in New York: “the Kingdom of the Netherlands remains committed to doing its part. Let me give three examples: (…) Our continued investment in the Gas for Gaza project” (Security Council Briefing: Middle East, 2018) Commissioner Hahn’s and Director Michael Köhler’s statement of political support and openness to consider financial support from the EU for G 4 G (March 2018) 6

Ariel M. Ezrahi Director of Energy Office of the Quartet Phone: + 972 (0) 54 932 8443 Email: aezrahi@quartetoffice. org www. quartetoffice. org 7