Barran Press
The General Electricity Corporation announced that Yemeni Prime Minister Ahmed bin Mubarak had approved the cancellation of diesel power purchase contracts with several local companies.
According to a memorandum obtained by Barran Press, contracts with Al-Saadi Trading Group, Al-Ahram Energy, Al-Olayan Energy, and Sapson Athargi were terminated following the Prime Minister’s directive. The decision was driven by the inability to secure adequate fuel for power plants, resulting in financial losses and difficulties in meeting contractual obligations.
The corporation emphasized the need to reduce reliance on diesel-powered plants, with alternative energy sources—such as the Petromasila and solar power stations—partially covering the shortfall.
The memorandum also cited a directive from the Minister of Electricity on February 16, ordering the immediate termination of contracts and the completion of procedures to vacate affected sites.
Since taking office last year, bin Mubarak has stated to implement substantial reforms to address Aden’s chronic electricity issues. He identified fuel procurement, transportation, and the maintenance of aging infrastructure as the sector’s main challenges. He also noted that the President’s power station in Aden operates on crude oil, which is expensive to transport from Marib to Nashima port for processing. Moving forward, Petromasila will supply crude oil directly to Aden’s electricity sector.
A 2023 parliamentary report described Aden’s electricity sector as a “black hole” draining public funds while benefiting fuel importers and vested interests. The report noted that 98% of the 569-billion-riyal electricity budget in 2022 was spent on fuel suppliers and spare parts from previous contracts.
Recently, Aden has faced widespread power outages, with sources reporting a blackout due to the depletion of the last available fuel for the President’s power station. The crisis has sparked nightly protests and road blockades, as residents express frustration over deteriorating services and prolonged power cuts.