The 4th batch of oil derivatives grant being provided by Saudi Arabia; via Saudi Development and Reconstruction Program for Yemen (SDRPY) to the Republic of Yemen arrived at the port of Aden; with quantities of 75,000 metric tons of diesel and 40,000 metric tons of fuel oil; with a total of 115 metric tons of Saudi oil derivatives; amounting to 302,000 metric tons since the start of the grant.
The grant aims to meet the monthly need being provided by the power stations in Yemeni governorates. And according to an agreed-upon precise governance to ensure reaching the beneficiary Yemeni governorates.
Director of based-Aden SDRPY’s office, Eng. Ahmed Madkhali said, “This grant came upon the directives of the Saudi leadership; and out of harnessing all efforts in various fields to help the Yemeni people.”
Improving the level of electric power
He added, “The Saudi oil derivatives grant had a positive impact on improving the level of electric power, and contributed during the first quarter of 2021 to the production of more than 764 megawatts as it contributed to improving the general conditions in various economic, health, educational and service fields.
“It also contributed to raising the operating capacity in the shops, increasing the hours of electricity operation in the governorates and reducing the hours of interruption and its recurrence, which contributed to achieving economic stability.”
The previous three batches contributed to the operation of 80 power stations distributed over the Yemeni governorates, under the supervision and follow-up of Oil Derivatives Distribution Committee, based on the previously provided need from the power plants in the Yemeni governorates.
The Saudi derivatives grant, through its batches that reached various Yemeni governorates, contributed to alleviating the burden on the Yemeni government’s budget, limiting the depletion of hard currency by the Central Bank of Yemen to purchase oil derivatives from global markets, and contributed to providing job opportunities, raising the productive power of the Yemeni citizen as well as improving vital sectors services and the lives of Yemeni citizens.
Improving daily living of Yemeni citizen
Through this grant, the Kingdom of Saudi Arabia seeks to contribute to the stability of fuel prices in Yemen, improve services in vital sectors and contribute to developing infrastructure, improving basic services inside Yemen and reducing frequent power cuts as well as improving the daily living of the Yemeni citizen.
The Yemeni Ministry of Electricity and Energy is also facing a challenge in the weak collection of revenues and their supply to the joint general account; as the amount of collection from electric power sales in the first quarter of the grant amounted to $9,421mn; or 48% of the total sales, amounting to $19.5mn; part of which was spent on the operating budget and salaries for the General Electricity Corporation; with an estimated value of $5.4mn; representing 57% of the collected amounts.
The ministry also faces a set of challenges; represented by the poor efficiency of power plants; the absence of periodic maintenance of electrical networks; the obsolescence of transmission and distribution networks; the length of electrical feeding lines and the loss of energy sold amounting to 46% of the produced energy; which amounts to 57% in Aden Governorate, as well as the random connection from the electrical network.
This is in addition to the decrease in revenues that do not correspond to the operational costs of the General Electricity Corporation; including the costs of oil derivatives.
The Saudi oil derivatives grant is part of the support of SDRPY; which provided more than 204 development projects; and initiatives implemented in various Yemeni governorates to serve the Yemeni people in seven basic sectors; education, health, water, transportation, agriculture and fisheries, and capacity building of government institutions, in addition to development programs.