EMD Letter

Dear Shareholders,

We are doing our best efforts to ensure that our duties continue successfully and that we are achieving the desired targets. In 2017, we were able to carry out various actions in which we fulfilled our commitments from contractual, financial and technical aspects.

We are doing our best efforts to ensure that our duties continue successfully and that we are achieving the desired targets. In 2017, we were able to carry out various actions in which we fulfilled our commitments from contractual, financial and technical aspects.

In cooperation with Ministry of Finance and Palestinian Energy and Natural Resources Authority (PENRA), they managed to comply with the main terms of the settlement agreement signed at the end of 2016 regarding the repayment of the outstanding receivables. They have complied with their commitment of settling all the promissory notes in accordance with the agreement. This enabled the company to fulfill its financial obligations and carry out its duties up to date in terms of the operations and maintenance. This can be considered as a great achievement for the company amidst the prevailing unstable political and financial situation.

We are working with all PNA related parties to confirm their commitment on the remaining terms of the settlement agreement which is to comply with the payment of the monthly invoices on a regular basis.

The company’s performance for this year has proven that we are in the right direction. Despite of incurring major maintenance activities, we were able to achieve good results that meet our shareholders expectations and interests.

Our local and qualified team, jointly with the German maintenance contractor, have successfully carried out all maintenance requirements for two gas turbines. This improved the power plant efficiency. While maintenance of the other turbines and equipment will be carried out during the coming period, we assure you that the power plant is capable to work in a proper manner and at full capacity. We will continue doing whatever is needed to maintain the power plant to deliver on its technical targets in order to ensure that our commercial and financial rights are fulfilled.

The current political and economic situations continue to have a significant impact on the company's duties due to the difficulties to obtain the required materials, equipment and spare parts. The limited quantities of fuel supplied by the Palestinian Authorities to operate the power plant places the company in a difficult situation whereby it is limited in the amount of electricity it can generate whereas the power plant is capable to operate at full capacity should the fuel be made available.

I assure the Board of Directors and our shareholders that we will spare no effort in order to preserve the rights of this company and to achieve the best possible results for our shareholders.

Finally, I would like to thank the Board of Directors for their continuous efforts and support for this company and the management despite all the adversities. We commend the tireless and sincere efforts of all the company's professional staff who work as a family to overcome all obstacles and meet the challenges and create appropriate alternatives so that the company will continue to fulfill its mission and achieve its goals.


Walid Salman

Vice Chairman & Executive Managing Director/p>