A delegation of the European Group for the Development of Gaza (EGDG), that is constructing the Gaza port, will arrive in Gaza next Sunday for pre-construction co-ordination talks. The company is a subsidiary of Ballastnedam of Holland and of Spie of France. These companies possess a wealth of experience in port construction in the Middle East, specifically Saudi Arabia. Construction of the port has now been confirmed under the Sharm Es-Sheikh agreement. Construction is expected to cost $80 million, to be financed mainly by contributions from Holland and France (one third each), plus a loan to the Palestinian Authority from the European Bank.
In line with the original plan, the Palestinians were planning to build a floating dock at a depth of 35 metres. The plan currently under consideration, however, calls for a port at a depth of 40 metres, and able to accommodate cargo ships of greater capacity. The construction companies and Palestinian officials estimate that the port will take two years to build, starting October 1999. Stage I of the port will include anchorage for only one cargo vessel at a time, and a waiting area for another vessel. Stage II has not yet been planned and nothing is known of financing sources for expansion beyond the initial stage. This being so, the new port poses no threat to Israeli ports in general or to that of Ashdod in particular.
Sources relating to the company reported that most tenders are directed to the local Palestinian market, and will help reduce unemployment in the Gaza Strip, while a small portion of contracts will go to Israeli sub-contractors. It was reported, however, that the tender for transporting quarry stones will also be open to Israeli companies.
Security co-ordination in respect of the construction of the port commenced this week. Decisions must be taken as to the method of security checks at the port, once opened, and as to the construction process in general and the handling of tremendous quantities of stones from the West Bank to Gaza in particular. The port will evidently feature an Israeli security check area.
Published by Israel's Business Arena September 9, 1999