The Egyptian government has signed an agreement with the Palestinian National Authority ( PNA) to finance the Egypt-Gaza power linkage project, the official MENA news agency reported.

The agreement was signed between Egyptian Minister of Electricity and Energy Hassan Younes and head of the PNA Natural Resources and Power Department Omar Katana.

According to the report, the agreement at a cost of 185 million Egyptian pounds (about US$33.6 million) calls for setting up linkage transformers of a 22 kv capacity to provide power for Rafah and al-Kanisa areas in the Gaza Strip.

The projects, which are financed by the Islamic Development Fund, also stipulate the establishment of a 60 kV transformer to supply Gaza power generation plant with electricity.

Katana said bids will be announced for the construction of the power linkage projects between Egypt and Gaza, adding the projects will help Gaza attain power self-sufficiency and dispense with the Israeli power sector.