The Yemeni Ministry of Electricity and Energy, recognized by the international community, has announced achieving a significant financial savings of $20 million from fuel procurement and transportation to liberated governorates.

According to the official Yemeni news agency Saba, the ministry detailed in a report that the savings have "significantly reduced financial burdens on the government, improved the efficiency of electricity generation processes, and enhanced services provided to citizens."

The ministry attributed this achievement to the work of a special committee for bidding on fuel for power generation plants, established by a decision from Yemeni Prime Minister Ahmed Awad bin Mubarak.

The ministry's report stated that the committee's actions have resulted in substantial savings on fuel costs and transportation since its inception. The savings amount to an estimated $19.8 million per month, equivalent to 55,000 tons of diesel fuel, compared to the average purchase price in 2023.

The report highlighted that this represents a 31% reduction in fuel procurement costs through transparent and competitive bidding processes. These processes facilitated obtaining the best offers from suppliers, contributing to lower expenses and increased economic efficiency of power generation plants.

The ministry further emphasized that the committee's procedures have improved operational efficiency through enhanced transportation and supply processes. This has also improved the efficiency of power generation plants, reducing downtime and leading to an overall improvement in the performance of the electricity sector.

The ministry stated that transparent bidding processes have fostered competition among suppliers, resulting in better offers and improved fuel quality.

The committee for bidding on fuel for power generation plants works in collaboration with the Fuel Supervision and Control Committee, established in 2018 with support from the Saudi Program for the Development and Reconstruction of Yemen.

The report highlighted the committee's success in ensuring the timely delivery of fuel to power plants and seamless integration throughout the supply chain. This has improved the continuity of fuel supply to plants and reduced downtime.

The ministry acknowledged the efforts of the Fuel Supervision and Control Committee in receiving and distributing fuel grants from Saudi Arabia and the United Arab Emirates. The committee ensures complete transparency in the distribution process to power generation plants in liberated areas and strengthens governance mechanisms.

On January 18th, Yemeni Prime Minister Ahmed Awad bin Mubarak issued a decision to form the committee for bidding on fuel for power generation plants and define its responsibilities.

According to Decision No. 20 of 2024, the committee is chaired by the Ministry of Finance and includes members from relevant ministries and entities. Its primary responsibilities include:

• Receiving fuel requirements for power generation plants submitted by the Ministry of Electricity and Energy (General Electricity Corporation) and the Fuel Supervision and Control Committee, based on each plant's consumption rate and required fuel type, and incorporating them into the committee's plan.
• Developing specifications and conditions for fuel procurement and determining the quantities to be announced.
• Approving bidding documents according to technical specifications approved by Aden Refineries Company and issuing approval before launching the bid.
• Approving the final contract format.
• Announcing the procurement of fuel for power generation plants in accordance with the Government Procurement, Bidding, and Stores Law No. (23) of 2007.

The electricity sector faces a government deficit, as acknowledged by Prime Minister Ahmed bin Mubarak in a previous television interview. He stated that the costs of importing oil derivatives for power plants in Aden are draining the state's public treasury, adding that two million dollars are burned daily in the skies of Aden.