Business in Brief [Archives:2007/1099/Business & Economy]

November 1 2007

– Cabinet to void all direct purchase orders

In its session last Tuesday, the cabinet has decided to void all direct purchase orders undertaken by all government agencies, and obliged all government agencies to follow the procedures of the public procurement law which includes the announcement of tenders and competitive bidding for government awards and purchases. This decision will be implemented from the first of January 2008, corresponding with the beginning of the new financial year.

– Cabinet voids nuclear power agreement

The Cabinet has decided to cancel the agreement between the Ministry of Electricity and Powered Corporation, based on the recommendation of the Supreme National Agency for Combating Corruption. In spite of that, Minister of Electricity Mustafa Bahran confirmed that Powered Corporation will start the feasibility study of introducing nuclear energy to Yemen in the first half of 2008 as initially scheduled.

– Powered Corporation announces key partners

Powered Corporation has named three key strategic alliances to assist in the development of energy projects in Yemen, It appointed Andrews Kurth as legal counsel, Longenecker & Associates and Lion Associates as key advisors in the implementation of its agreement with the Yemeni Government. Under which Powered Corporation will build power plants to generate electricity and desalination water using nuclear energy.

– Investment Climate Improves in 2007

The General Investment Authority (GIA) has stated that the number of licensed new investments during the third quarter of 2007, reaching 110 projects costing 99.1 billion Riyals, compared to 53 projects costing 97.4 billion Riyals in the same period of 2006. The total number of investments licensed in Yemen since the establishment of the GIA in 1992 is 5,774 projects, costing a total of 1,680 billion Riyals.