http://www.yemenobserver.com

The Studies and Economic Media center (SEMC) has urged the Yemeni government to uphold transparency in clenching power purchase contracts to offset the electricity shortage across the country.

Economists and journalists accuse Minister of Electricity and energy of tampering funds allocated for providing power

The Center criticized the violations committed by the government when it bought a total of 60 megawatts over the past few months at the price of of 35.5 million to offset electricity shortage in Aden for two years.

The amount, which is much higher than the real value of the leased generators generating the purchased power, also includes 3.5 million in insurance to be paid for maintenance and fuel, it highlighted. It pointed out that the power bills handed over to Aden port and free zone customs authorities amounted to only 10 million while the value of the purchased power stood at 35.5 million dollars.

 Customs documents indicate that the total cost of the rented generators  stands at 25% of the purchased power value set forth in the contracts, it noted, adding that a total of 140 megawatts of electricity were purchased  in favor of the governorates of Aden, Lahj, Abyan, Shabwa, Hadramout and Hodeidah.

The deal involves arithmetic errors as the total value of power bought by the government was calculated based on the rule that states: 20,000 kilowatts x 24 hrs x 0.03 cents = 10800  i.e.   an increase of 8000 dollars from the real value, it further noted.

It stated that some generators, including those leased in the Abyan district of Ludar, had already gone into obsolescence, as the Yemeni-Saudi Cement factory  had used them for two years and then decided to do away with them.


According to the documents, which were obtained by the center, the government refunded payable customs fees of four customs statements of some generators one year after they were paid under the numbers 35,43, 58, 59.

The generators were brought into the country through Aden free zone customs entry points in 2010, as three custom statement warranties were returned though the materials imported based on such guarantees were not re-exported.

The deal was signed based on a request from Agreeco and the public electricity authority, given that the latter needed to rent the generators and other items, which were imported in the name of the factory.

Though the authority is not liable to the customs exemption law set forth in the 2012 customs act (12). The real  operating  capacity of Ludar generators  was only 10 megawatts  , 5 megawatts less than the agreement stated, it concluded.  

Related Content

•  http://www.yemenobserver.com
•  http://www.yemenobserver.com
•   http://www.yemenobserver.com
•   http://www.yemenobserver.com
•   http://www.yemenobserver.com
•   Yemen government seeks $ 11 billion from donors
•   Indonesia’s Medco Energi buys RIL’s stake in Yemen oil block
•   Counterfeit currency enters money market in Yemen
•   Yemen Ministry of Planning reviews emergency fund
•   Yemen raises capital of the Reconstruction and Development Bank