October 12, 2008

Yemen to develop private power project

MEED reported that Yemen is preparing to develop its first privately owned power generation project and is in the early stages of discussions with potential investors.

The World Bank's International Finance Corporation is advising Sanaa on ways to encourage private investment in Yemen and is in talks with parties interested in investing the in country's power sector.

Mr Gulrez Hoda associate director of the IFC in the Middle East & North Africa said that "Yemen is one of our focus countries. We are trying to work with the government to open up the financial and infrastructure sectors. We have signed an agreement with the government of Yemen to help them develop a series of public-private partnership projects. Hopefully the first one will be in the power sector."

Mr Hoda said that details of the project have not been finalized but a number of private groups have expressed interest. He added that "There is a general interest in investing in the power sector from a number of investors. Once the transaction advisory process moves forward we will draft a shortlist of bidders."