IFC Supports Public-Private Partnership for Power Plant in Yemen
In Washington DC:
Zibu Sibanda
Phone: +1 202 473 0605
Email: zsibanda@ifc.org
In Egypt:
Riham Mustafa
Phone: +1 20 2 2461 9140 ext. 306
Email: rmustafa@ifc.org
Sana’a, May 13, 2008 —IFC,
a member of the World Bank Group, today signed an advisory agreement with
Dr. Mustafa Bahran, Minister of Electricity and Energy of the Republic
of Yemen, to help the government mobilize private investment for a new
gas-fired independent power generation plant (“IPP”).
Yemen has one of the lowest rates of
electricity capacity per capita in the Middle East and North Africa. Inability
to meet a demand growing by almost 10 percent a year has resulted in power
shortages and reliance on inefficient, costly diesel-fired rental units.
By undertaking its first IPP, the government aims to increase private investment
in the country’s power sector, make the electricity supply more reliable
and accessible, and lower both its dependence on oil and the cost of power
generation.
The project is part of the government’s
objective to improve infrastructure and public services through public-private
partnership transactions, while building a conducive legal, regulatory,
and economic environment for sustainable private sector participation in
public services.
Dr. Bahran said, “This project is an
important step toward achieving the objective of increasing Yemen’s power-generating
capacity to 1,400 megawatts by 2010, using alternative fuel. The
initiative will ensure the supply of more affordable and reliable electricity
through new power generation.”
Jesper Kjaer, General Manager of IFC
Advisory Services in the Middle East and North Africa, PEP_MENA, added:
“Our work with the government of Yemen focuses on ensuring that they structure
a partnership with the private sector that balances the commercial viability
of the power plant with benefits for the general public. Structuring
such mutually beneficial public-private partnerships is an area of expertise
that IFC has developed from experience in similar projects around the world.”
IFC Advisory Services in the Middle
East and North Africa – PEP-MENA – will support the project. IFC PEP-MENA
focuses on helping develop viable public-private partnership projects in
infrastructure, improving the business enabling and regulatory environments
in the region, strengthening the financial sector, and promoting the growth
of small and medium enterprises.
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people should
have the opportunity to escape poverty and improve their lives. In FY07,
IFC committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
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