Emaar Yemen signs an agreement for the concession of 200 million dollars in new petroleum derivatives

As an extension of the Kingdom of Saudi Arabia’s continued support for the Yemeni people under the direction of the Keeper of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Highness the Crown Prince – may God protect them – and in response to the request of the government of the Republic of Yemen to assist it in the supply of petroleum derivatives for the operation of power plants in the Republic of Yemen, the signed Saudi program for the development and reconstruction of Yemen, represented by the general program supervisor, the ‘Ambassador Muhammad bin Saeed Al Jaber, and the Yemeni government, represented by His Excellency the Minister of Electricity and Energy of Yemen, Eng. Mana’ Yeslam bin Yamin, and in the presence of His Excellency the Yemeni Minister of Finance Salem bin Saleh bin Brik, the Saudi oil derivatives concession agreement worth a total of $ 200 million To supply a total of 250,000 tons of oil derivatives to the sister Republic of Yemen.

The Saudi Development and Reconstruction Program for Yemen has implemented procedures for the provision of the first grant amount in Saudi oil derivatives worth 30 million US dollars out of a total value of 200 million US dollars to operate more than 70 power plants in the Republic of Yemen.

During the signing of the agreement, His Excellency the Supervisor General of the SDRPY, Ambassador Muhammad bin Saeed Al Jaber, said that the new concession of Saudi oil derivatives stems from the strong brotherhood and ties between the Kingdom of Arabia. Saudi is the sister Republic of Yemen, and as an extension of Kingdom development and economic support to Yemen through the Saudi Development Program and the reconstruction of Yemen in various fields, as well as to strengthen and support the Yemeni economy in a way to allow the Yemeni government to fulfill its other obligations.

For his part, the Yemeni Minister of Electricity and Energy, Eng. Mana ‘Yaslam bin Yameen, praised the efforts of the Kingdom of Saudi Arabia through the SDRPY to secure the subsidy on Saudi oil derivatives. , which was directly reflected in the increase in the capacity of the government institutions and the stable operation of electricity in hospitals, medical centers, roads, schools, airports, ports and various other government structures e privateas well as industrial activity and the promotion of commercial circulation in various governorates, and the supply of electricity has contributed to the improvement of basic services provided to citizens, in particular social security and stability, adding: The Saudi subsidy on petroleum derivatives has had a direct impact on the electricity supply in the Republic of Yemen and on the stability of fuel stocks. Petroleum in an orderly and stable way, which is reflected in the high hours of operation of the plants, where in some governorates had more than 20 hours of operation per day.

The new subsidy for petroleum derivatives comes as an affirmation of the will of the Kingdom of Saudi Arabia to achieve security, stability and development for the brotherly Yemeni people, and as an extension of previous subsidies totaling 4.2 billion. of dollars, the latest of which was a $ 422 million grant for which procurement procedures have been completed in a full year, which contributed to economic stability, strengthening the Yemeni government budget, increasing the purchasing power of the Yemeni citizen and improving the security situation, as well as contributing to the improvement of the service sector, the improvement the life of citizens, increasing the average daily hours of service for the operation of power plants and ensuring the activation of self-management of power plants in Yemen.

Subsidies of previous oil derivatives provided by the SDRPY have contributed to a partial reduction in public spending, which feeds the Yemeni economy by reducing the spending burden on the government, providing the budget operating and wages to the General Electricity Corporation totaling $ 21 million in the period from May 2021 AD to April 2022 AD and doubling the production capacity reached the target of 2,828 gigawatt hours during the period of operation of the stations.

It also helped cover the needs of power plants in Yemen, in which the total electricity sales of Yemeni General Electricity Corporation increased by 81.7 million US dollars, an increase of 20% compared to previous years, and the total increase in revenues was 41% compared to previous years and helped limit the depletion of reserves in foreign currency by the Central Bank of Yemen for the purchase of petroleum derivatives for the generation of electricity from global markets, reducing the selling prices of fuels from international electricity generation prices by 79% for diesel fuel and the 94% for diesel fuel in the period from May 2021 AD to April 2022 AD

The previous contribution on petroleum derivatives provided electricity to all subscribers of the General Electricity Corporation, which amounted to 760 thousand subscribers, with an average consumption per subscriber of 37 kilowatt hours, and the number of beneficiaries reached 9,837,044 beneficiaries in the period from May 2021 AD to April 2022 AD and helped increase the revenue of the Yemeni Electricity Corporation by providing 20% ​​of the Yemeni government budget.

The new Saudi subsidy on petroleum derivatives contributes to the operation of 70 power plants, which is directly reflected in the operation of hospitals, medical centers, roads, schools, government facilities, airports and ports, as well as enhancing commercial and economic movements, contributing to improve all aspects of life in Yemeni governorates.

The governance of the grants is implemented by a supervisory and control committee of several Yemeni party members of the SDRPY, which will contribute to the operation of power plants, the improvement of basic services within the Yemeni governorates, the development of infrastructure, the provision of of job opportunities, to support the Yemeni economy and to guarantee commercial and industrial activities.

The SDRPY aims, through the concession of petroleum derivatives, to contribute to the stabilization of the Yemeni economy, as well as to the rehabilitation of infrastructure in the electricity sector in Yemen and the restoration of basic services that have a direct impact on the Yemeni people.

The concession of the previous Saudi oil derivatives had a direct impact on the supply of electricity for a year, especially in the summer months, which represent the peak of electricity consumption by operating more than 70 power plants, through the application of precise procedures. and governance through many technical models and procedures to ensure the arrival of petroleum derivatives.

The previous concession of petroleum derivatives had direct repercussions through the high rate of average operating hours of electricity in several governorates; It increased by 20% in Aden governorate in the period from May 2021 to April 2022, which increased the commercial movement by increasing the working hours in stores and markets and the procedures and governance of the derivatives concession of oil have contributed to the reliability of energy production and the stability of the electrical system.

The contribution on petroleum derivatives helped to reduce by 21% the electricity losses deriving from the difference between the energy produced and the energy sold in the period of supply of petroleum derivatives to the power plants, especially in the Governorate of Aden, which helped increase the operating hours of power plants and increasing the economic and trade movement.

The Saudi subsidy on oil derivatives is part of the support of the Saudi Program for the Development and Reconstruction of Yemen, which presented 224 development projects and initiatives that it has implemented in various Yemeni governorates to serve Yemeni brothers in 7 key sectors: education, health, water, energy, transport, agriculture and fisheries and capacity building of government institutions and development programs.

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