The agreement was signed after discussions between Palestinian Civil Affairs Minister, Hussein al-Sheikh, Israeli Minister of Finance, Moshe Kahlon, and head of the Coordination of Government Activities in the Territories (COGAT), Yoav Mordechai.

A spokesperson for Mordechai said in a statement that the agreement was signed after “complicated” and “prolonged talks

He added, “We have reached a remarkable decision that will allow the Israel Electricity Company to receive unpaid bills accumulated over more than a decade.”

Israeli newspaper Haaretz reported that the PA provides around 88 percent of the total electricity consumption in the occupied Palestinian territory.

The newspaper added that the initial payment was expected immediately, while another billion shekels ($264,068,250) was expected to be paid by the PA in instalments spanning an extended period of time, and another 500 million shekels would be permanently erased from the PA’s debt