Business

General Institution for Electricity in disarray

 

National Yemen

Marib power plant

BY NY Staff

Official documents have revealed that the General Institution for Electricity is suffering huge losses as a result of transactions with illegal companies and accepting to go through compromises with contractors.

The documents also showed that the institution had received materials which violate regulations and laid out the costs of missing materials in contracted work.

A meeting’s minutes revealed that a contract between the institution and the Al-Ahram Company was unfair and didn’t allow for the institution’s legal rights.

A memo issued by the general manager for the institution’s assessments unit to the Minister of Electricity and Energy showed that the institution had made an agreement with a contractor whose articles caused the institution further losses.

The memo stated that the contract was illegal and that any procedures should be lawful for both sides. “Though it’s supposed to be sent to higher committee for tenders, the minister did not sent it for approval,” stated the memo.

For his part, Minister Saleh Sumai’e directed the general manager of the Public Electricity Institution to cancel the agreement with the contractor as wells any steps taken to implement the contract’s terms.

In a related matter, reports have discussed the possibility of closing the Marib Gas Station because of issues with sediment and debris in its turbines as a result of accumulations of dust and dirt in addition to imbalances in the company’s air intake system. The reports stated that the main contractor was informed of the problem in 2011, but that nothing had been done to resolve the problem.

A statement presented by a consultant for the institution’s general manager revealed that the contractor had refused to resolve problems and complete remaining projects.

1 Comment

  • Its a matter of big problem that general institution for Electricity is suffering huge losses. I wish very soon they will overcome all the major problem and will able to stand in a profit platform. So just wait and go ahead with power.