Yemen taps BHEL for 400MW gas-fired power plant deal valued at over $392MM

Source: SNA

An agreement was signed on Sunday to implement the 2nd phase of the Marib Gas Power Plant Project with a capacity of 400 MW at a total cost of about USD 392.7 million.

The agreement was signed, in presence of Prime Minister Ali Mujawar, by Director-General of Yemen's Public Corporation for Electricity (PCE) Khalid Abdul-Wali and Executive Director of the Indian Bharat Heavy Electrical Ltd (BHEL) which will implement the project.

The project is funded by the Saudi Fund for Development, the Arab Fund for Economic and Social Development, the Omani government and the Yemeni government.

The project, which comes within the operational steps of the strategy to reform the electricity sector, aims to enhance the generation capacity of the electrical system and eliminate the deficit of the generating capacity in power plants.

It also aims to prepare the national power grid to transfer higher capacities and increase the equilibrium of the system, in addition to the optimal economic exploitation of the gas sources in the country through the expansion in constructing the gas plants.

The primer stressed the commitment of operational steps in accordance with the schedule and strict adherence to technical specifications and standards, pointing to the significance of the project in supporting the development of the electric power, which is the main engine of development.

Director-General of PCE made it clear that the project is scheduled to be implemented within 33 months from now.

The 1st phase of the Marib Gas Power Plant Project was launched in 2009 at a capacity of 260 megawatts.

The Ministry of Electricity has a program to increase power generation capacity over the next ten years and there will be a need for new power plants transmission and distribution systems.

In 2002, Yemen's oil-fired power plants generated 3.1 billion kilowatt hours of electricity. According to Yemen's Public Corporation for Electricity (PCE), the country's generating capacity (810 MW) and electricity distribution network is inadequate.

Currently, it is estimated that less than one-third of households in Yemen have access to electricity from the national power grid.

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