Parliament approves loan for construction of electrical projects [Archives:2007/1035/Business & Economy]

March 22 2007

SANA'A, 21 March ) In its session held on Monday, Parliament approved a loan to establish a second electric gas station in Mareb, together with expanding the transport network, according to the agreement signed between Yemen and the Arab Fund for Economic and Social Development valued at around US $100 million.

This decision was taken following the recommendations of a report prepared by development and service committees. Parliament asked the government to commit itself to the items of the agreement and hasten the implementation of the project according to international quality standards. It also asked the required sums from 2008 budget be secured beforehand to cover the share to be financed by the government and demanded reconsideration of the fees of electrical consumption which are relatively high.

Further, Parliament urged the government to raise adequate finances to secure the remaining sums required for completing the third phase of the project in Mareb which is projected to have a capacity of 400 Megawatt. Parliament also asked the government to meet the deadline for completion of the first gas station which is due to begin operating next November. It also demanded periodic and annual performance reviews as well as greater oversight of the withdrawal of funds and their use .

Parliament also approved an agreement to import Saudi industrial commodities required in the building of different electrical projects, adding that the government should commit itself to ensuring the quality of the goods purchased and the acquisition of necessary materials at competitive prices.