Republic of Yemen

Construction of a 60 MW Wind Farm in the Al-Mokha Area

Loan No.:

581

Interest Rate:

2.5%

Beneficiary:

Public Electricity Corporation (PEC)

Grace Period:

5 years

Project Cost:

KD 35.7 million

Maturity:

25 years

Amount of Loan:

KD 18.0 million

Repayment:

41 semi-annual installments

Date of Loan Agreement:

17/04/2012

First Installment:

5 years following the first disbursement

Date of Effectiveness:

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Objectives:

The project aims at enhancing the electrical generating capacity in Yemen in order to meet part of the increasing demand for power and energy in the country, without using fossil fuel. This will be accomplished through the construction of a 60 MW wind farm in the Al-Mokha area, and connecting it to the national transmission network.

Description:

The project, which is expected to be completed by the end of 2014, includes the supply and installation of low voltage (LV) wind turbines, having a total capacity of 60 MW, transformers to raise the generated voltage to 132 kV, the construction of a 132 kV transmission line from the project site to the Al-Mokha substation, the addition of a 132 kV cell at the substation to accommodate the transmission line, along with the provision of engineering services, computers, software and institutional support. The project includes the following main elements:

  1. Wind Farm: This includes the supply and installation of LV wind turbines, transformers to raise the voltage to 33 kV, the construction of a 160 MVA substation rated 33/132 kV, the construction of a 2.6 km 132 kV transmission line between the wind farm and the Al-Mokha substation which is attached to the Al-Mokha power plant, the addition of a 132 kV cell at the substation to accommodate the transmission line, along with the execution of civil and electrical works necessary for the operation of the project.
  2. Engineering Services, Computers and Programs: This includes engineering services needed during contract negotiations with contractors and suppliers, coordinating and organizing construction and installation works included in the project, and equipment witness testing. This element also includes the acquisition of computers and programs needed to analyze PEC's electrical system in order to improve its efficiency.
  3. Institutional Support: This includes training of PEC technical staff in wind farm technologies, constructing stations for measuring wind speeds at various locations in the country, establishing a company for constructing and operating wind projects, and developing standard tender documents for such projects.

Financing:

The Arab Fund's loan covers about 50% of the total project cost. The World Bank will participate in financing the project through a grant valued at around KD 5.6 Million (16% of the total project cost), and the OPEC Fund will provide a loan for the same amount. The Yemeni Government will cover the remaining cost of the project and any additional cost that may arise.


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