Disputes Over Electrical Revenues Suspend the Saudi Oil Grant to Yemen


Mon, 14-02-2022 08:45 PM, Aden

Aden (South24) 

A source in the electricity authority of the capital Aden told "South24" today that disputes over the electricity sector's revenues suspended the Saudi oil grant to Yemen.

According to the source, the Saudis suspended the oil grant due to the failure of electricity bodies in a number of the beneficiary governorates to transfer the sector's revenues to a special account.

The source added that one item of the grant which was delivered at the end of March stipulated that the electricity bodies are obliged to transfer the revenues to the special account supervised by the KSA after the deduction of employees' salaries.

Another item, according to the source, stipulated that the Saudi side is committed to the maintenance of electrical stations and the provision of spare parts and oils necessary for their operation but the KSA failed to adhere to that.

The source pointed out that a number of electricity authorities in South Yemen as well as Marib used their revenues over the past year to provide maintenance, oils and spare parts.

The source further added that Aden Electricity is the only body which transferred the revenues to the special account, while many of its power plants await maintenance, spare parts and  operating oils in light of the agreement.

The source indicated that 17 billion Yemeni Rial are currently deposited in the special account  after receiving the electricity revenues since signing on the Saudi grant one year ago.

According to the source, these billions have not been so far paid in providing spare parts and making maintenance for the plants. 

The source added that 60% of the governmental plants in Aden need maintenance and spare parts.

In 2021, KSA announced providing a US$422 million oil grant to operate power plants in Aden and other provinces after a stifling fuel crisis that caused grassroot resentment. 

South24 Center for News and Studies
Photo: The third batch of Saudi oil derivatives, worth a total of $4.2 billion, will reach the intended beneficiaries and improve the living standards of Yemenis. (SPA)

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