[21/01/2026 07:28]

RIYADH – SABA
A tripartite agreement was signed Wednesday between the Ministry of Electricity and Energy, the Yemeni Oil Company (PetroMasila), and the Saudi Program for the Development and Reconstruction of Yemen to finance petroleum derivatives and supply more than 70 power generation stations across various governorates.

The total quantities of petroleum derivatives amount to 339 million liters of diesel and fuel oil, with a value of USD 81.2 million.

The grant represents a strategic pillar as an integrated support tool that enhances the efficiency of government institutions, stimulates the Yemeni economy and positively impacts the improvement of services provided to citizens by increasing the reliability of electricity supply to hospitals and medical centers, roads, schools, airports, and seaports, as well as boosting economic and commercial activity.

The grant is being implemented in accordance with comprehensive and integrated governance mechanisms to ensure that the quantities reach the final beneficiaries.

A committee comprising several Yemeni entities has been formed to oversee and monitor the distribution of petroleum derivatives to power stations based on the needs submitted by generation plants in the various governorates.

The effects of this grant extend to integrated financial, economic, and service dimensions by supporting Yemeni institutions such as the Central Bank of Yemen, through reducing pressure on foreign currency reserves.

At the level of the Ministry of Finance, the grant contributes to easing the financial burden on the state’s general budget associated with fuel costs and the operation of the electricity sector.

At the level of the Ministry of Electricity and Energy, the grant plays a pivotal role in ensuring the stability of fuel supplies to power generation stations, maintaining their continuous operation, increasing the efficiency of generation plants, and improving their operational and production capacity.

It is worth noting that the Saudi Program for the Development and Reconstruction of Yemen has previously provided fuel-derivative grants, including a grant in 2018 worth USD 180 million, a grant in 2021 worth USD 422 million, a grant in 2022 worth USD 200 million, in addition to the current grant for the year 2026.

The agreement aims to enhance institutional capacities, support the stability of the electricity sector and the continuity of its services, and operate vital national facilities, in support of economic recovery and growth efforts in Yemen.

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