In continuation of the ongoing support of the Kingdom of Saudi Arabia to the Yemeni people, in accordance with the directives of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud and His Highness the Crown Prince – may God preserve them – and in response to the request of the Government of the Republic of Yemen to assist him in providing oil products for operation of power plants in the Republic of Yemen, a Saudi program signed for the development and reconstruction of Yemen, presented by the General Manager of the program, Ambassador Muhammad bin Saeed Al Jaber and the Government of Yemen, represented by His Excellency Minister of Electricity and Energy of Yemen Engineer Man Yeslam bin Yamin and in the presence of His Excellency Yemeni Finance Minister Salem bin Saleh bin Brik, an agreement on the provision of petroleum products totaling $200 million. Provide a total of 250,000 metric tons of petroleum products to the sister Republic of Yemen.
The Saudi Development and Reconstruction Program for Yemen has implemented procedures to provide the first amount of a Saudi oil products grant of US$30 million out of a total cost of US$200 million to operate more than 70 power plants in the Republic of Yemen.
During the signing of the agreement, His Excellency SDRPY Observer General Ambassador Muhammad bin Saeed Al Jaber stated that the new Saudi oil derivatives grant comes from the strong brotherhood and ties between the Kingdom of Saudi Arabia and the sister Republic of Yemen. , and as an extension of the Kingdom’s development and economic support to Yemen through the Saudi Yemen Development and Reconstruction Program in various fields, and to strengthen and support the Yemeni economy so that the Yemeni government can fulfill its other obligations. .
For his part, the Minister of Electricity and Energy of Yemen, engineer Mana Yaslam bin Yameen, praised the efforts of the Kingdom of Saudi Arabia through SDRPY to obtain a grant for Saudi oil derivatives, which directly reflected in the increase in government capacity. institutions and the stable operation of electricity in hospitals, medical centers, roads, schools, airports, ports and various other public and private facilities, as well as industrial activities and the promotion of commercial traffic in various governorates, as well as the supply of electricity. on improving the basic services provided to citizens, especially in the areas of security and social stability, adding: The Saudi Arabian Grant for Petroleum Products has had a direct impact on the electricity supply in the Republic of Yemen and the stability of fuel supplies. in an orderly and stable manner, as reflected in the high operating hours of power stations, with operating hours in some governorates exceeding 20 hours a day.
The new oil derivatives grant is a confirmation of the Kingdom of Saudi Arabia’s commitment to the security, stability and development of the brotherly Yemeni people, and is a continuation of previous grants totaling $4.2 billion, the most recent of which was a grant of $422 million. the procurement procedures of which were completed throughout the year, which contributed to economic stability, strengthened the budget of the Yemeni government, increased the purchasing power of the Yemeni citizen and improved the security situation, and contributed to the improvement of the service sector, improving the lives of citizens, increasing the average daily hours of operation of power plants and ensuring the revitalization self-operating power plants in Yemen.
Previous oil derivatives grants provided by SDRPY have contributed to a partial reduction in government spending, which is fueling the Yemeni economy by reducing the burden of spending on the government, providing an operating budget and wages to General Electricity Corporation with a total of $21 million between May 2021 AD to April 2022 AD and doubling. Production capacity reached the target of 2,828 gigawatt-hours during the life of the stations.
It also contributed to meeting the needs of power plants in Yemen, in which total electricity sales from the Yemeni General Electricity Corporation increased by $81.7 million, up 20% from previous years, and the total collection growth was up to 41% on also contributed to limiting the depletion of foreign exchange reserves by the Central Bank of Yemen to purchase petroleum products for power generation in world markets, by reducing fuel selling prices from world power generation prices by 79% for diesel and 94% for diesel fuel between May 2021 and April 2022 AD
The previous oil derivatives grant provided electricity to all of General Electricity Corporation’s 760,000 subscribers, with an average consumption per subscriber of 37 kilowatt-hours, and the number of beneficiaries reached 9,837,044 beneficiaries, from May 2021 AD. to April 2022 AD and helped increase the revenues of the Yemeni Electricity Corporation, which provides 20% of the Yemeni government budget.
Saudi Arabia’s New Oil Derivatives Grant Supports the Operation of 70 Power Plants, Which Directly Impacts Hospitals, Medical Centers, Roads, Schools, Government Offices, Airports and Ports, and Promotes Commercial and Economic Movement, Which Improves All Aspects of Life in Yemen’s Governorates .
The grant is administered by an oversight and control committee from several Yemeni SDRPY parties, which will promote the operation of power plants, improve basic services in Yemeni governorates, develop infrastructure, provide jobs, support the Yemeni economy, and secure commercial and industrial activities.
SDRPY aims to contribute through the Oil Derivatives Grant to the stabilization of the Yemeni economy, as well as to contribute to the reconstruction of infrastructure in Yemen’s electricity sector and the restoration of basic services that have a direct impact on the Yemeni people.
The provision of previous Saudi oil derivatives had a direct impact on the supply of electricity throughout the year, especially during the summer months, which represent the peak of electricity consumption in the operation of more than 70 power plants, through the application of precise procedures and management through a variety of technical models and procedures that ensure the flow of oil products.
The previous oil derivatives grant had a direct impact in the form of high average electricity run times in several governorates; Between May 2021 and April 2022, it increased by 20% in the province of Aden, which increased trade traffic by increasing working hours in shops and markets, and the procedures and management of the subsidy for petroleum products contributed to improving the reliability of energy production and the stability of the electrical system .
The oil product grant contributed to a 21% reduction in electricity losses as a result of the difference between produced and sold energy during the period of supply of oil products to power plants, especially in the province of Aden, which contributed to the increase in operating hours of power plants. power plants and increased economic and commercial traffic.
The Saudi Oil Derivatives Grant is part of the Saudi Yemen Development and Reconstruction Support Program, which featured 224 development projects and initiatives implemented in various governorates of Yemen to serve Yemeni brothers in 7 main sectors: education, health, water , energy, transport, agriculture and fisheries, as well as building the capacity of government institutions, as well as development programs.
