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Republic of Yemen

Construction of a Second Maírib Gas-Turbine Power Generating
Station and Expansion of the Transmission Grid (Supplementary Loan)

Loan No.:

564

Interest Rate:

2.5%

Beneficiary:

Public Electricity Corporation (PEC)

Grace Period:

5 years

Project Cost:

KD 158.4 million

Maturity:

25 years

Amount of Loan:

KD 43.0 million

Repayment:

41 semi-annual installments

Date of Loan Agreement:

06/03/2011

First Installment:

5 years following the first disbursement

Date of Effectiveness:

13/07/2011


Objectives:

The project aims at satisfying the increasing demand for electricity in the Republic of Yemen. This will be accomplished through the construction of a second gas-turbine power generating station, rated at 400 MW, to be located adjacent to the first gas-turbine power generating station being constructed in Safir area in the Governorate of Maírib, along with the expansion of the transmission grid in order to allow it to evacuate the additional power and energy generated from the new generating station.

Description:

The project includes the supply and installation of a 400 MW gas-turbine power generating station using natural gas, available in the project area, as primary fuel and light fuel as a backup fuel, and connecting the generating station with the electrical grid in Yemen through the expansion of the 400 kV switchyard that was built as part of the first station. The project also includes the construction of new transmission lines and substations, and the expansion of an existing substation, along with the provision of necessary consultancy services and institutional support. The project, which is expected to be completed by the end of 2013, includes the following major components:

  1. Power Generating Station: This includes the supply and installation of four gas turbines, each rated at 100 MW and using natural gas as primary fuel, four electrical generators each rated at 125 MVA, four 15/400 kV transformers each rated at 125 MVA, along with the execution of all required civil, mechanical and electrical works.
  2. Expansion of the Switchyard: This includes the expansion of the 400 kV switchyard, which was constructed as part of the first power generating station, through the addition of six new bays, including all their necessary control, protection and communications equipment.
  3. Expansion of the Transmission Network: This includes the construction of new 132 kV transmission lines, the construction of two new 132/33 kV substations, and the expansion of the existing 132/33 kV Dhamar substation.
  4. Consultancy Services: This includes assisting PEC in tender evaluation, reviewing construction drawings, project supervision, participating in witness testing and acceptance tests for major project components.
  5. Institutional Support: This includes the acquisition of systems, programs and equipment, along with consulting services, needed to enhance the performance of PEC, and the training of its employees.

Financing:

The Arab Fundís supplementary loan covers about 63% of the financing gap of the project. The Yemeni Government will cover the remaining cost of the project and any additional cost that may arise.


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