Yemen’s government led by President Abd Rabbuh Mansur Hadi confirmed on Saturday that the power shortage, caused by war, will be effectively addressed. President Hadi ordered the release of supportive Gulf grants, estimated to amount to $210 million, which were frozen due to militants running over the nation’s central bank.
The internationally recognized government has recently moved the central bank headquarters from the militia-held Sana’a to Aden. The move was meant to stop coup militias, namely composed of Iranian-backed Houthis and combatants supporting ousted former president Ali Abdullah Saleh, from using the facility’s reserves to finance their military effort.
Prime Minister Ahmed Obeid bin Daghr was officially appointed by Hadi to overlook the disbursed funds and direct their flow into the national power sector.
In an emergency meeting held in Aden city, Yemen’s temporary capital, Hadi ordered that a Kuwait-sponsored $115 million grant be invested in a project set forth to serve the city’s electricity feed. Financing transport and other civil projects, other Gulf grants were also discharged.
The government approved the project on constructing a diesel-fueled local power station in Aden that will be supplying eastern provinces with an estimated 150 megawatts at a $172 million cost.
A $29 million and $700,000 have been released by the government for the renovation of Al-Heswa power station– post renewal, the station is expected to provide an additional 80 megawatts, raising production capacity from 60 to 140 megawatts in total.
Deputy Minister of Electricity Mubarak al-Tamimi said that the Al-Heswa’s renovation will be completed over the course of two chief phases. Phase one at the cost of $29 million, whilst phase two will need a $30 million fund.
Tamimi confirmed that the government had approved the project fully, with phase one expecting completion before summer 2017.
He added that other than the construction and renovation of power stations, the government has also approved projects on establishing power transmission lines. Tamimi said that transmission line development would be financed by Saudi, UAE and local funds.