Gaza power plant shuts down amid fuel shortage

GAZA, Aug 19 (Reuters) Gaza's main power plant shut down operations Today after it said it had depleted its fuel reserves, despite a pledge from Israel to resume deliveries that were halted late last week.

Israel opened the Nahal Oz crossing on the border of central Gaza to allow fuel into the territory, which the Hamas militant group took over in June. Power plant officials said the private Israeli energy company Dor Alon has yet to deliver any fuel.

The firm said the disruption was because of a decision by the European Union, which refused to pay for TOday's shipment.

The EU has an aid programme that funds fuel for the plant and requires its monitors to oversee shipments made through Israel.

Since Hamas's takeover, Israel, the Western-backed Palestinian leadership in the West Bank and international powers have all but sealed off the enclave of 1.5 million people from the outside world, except for humanitarian supplies.

Israel supplies most of the fuel to the plant and provides electricity lines to Gaza under interim peace accords. It stopped fuel transfers through a Gaza border crossing last week, citing security threats.

''Because of the security situation, we have decided to take stock of all our mechanisms and systems for delivery of our assistance,'' said Alix de Mauny, an EU spokeswoman in Jerusalem.

''Pending the results of the review, we hope to resume these payments within the next 24 to a maximum 48 hours.'' The EU was conducting an ''overall review'' of the programme and was seeking assurances Hamas did not play a role in it and that security would be provided for the fuel transfers, an EU diplomat said.

Palestinian Information Minister Riyad al-Malki said the EU had stopped paying for fuel to be transferred because Hamas had seized control of the only Palestinian power company based in Gaza.

About half of Gaza's residents will be affected by the main plant's shut-down, plant officials said.

Dor Alon said in a statement: ''If and when the EU or another reputable source will commit to paying us for the fuel for the power station, the supply will resume''.

Israeli Infrastructure Minister Binyamin Ben-Eliezer said the decision to resume deliveries was for Dor Alon to make.

Ben-Eliezer said that Israel, which supplies 70 percent of Gaza's electricity, was in the process of adding a new power line into the territory.

REUTERS sbc rk2332