Saudi oil derivatives grant arrives in Socotra to support electricity
The Yemeni governorate of Socotra received today the first shipment of Saudi oil derivatives provided through the Saudi Development and Reconstruction Program for Yemen. This vital step aims to operate power plants and ensure the continuity of electricity supply in the districts of Hadibu, Qalansiyah, Muri, and Alama, paving the way for extending support to various power generation stations across all liberated Yemeni governorates.
Comprehensive economic support package
The arrival of this shipment to the Socotra archipelago is part of an urgent implementation of the development and economic support package recently announced by the Kingdom of Saudi Arabia. This substantial package includes 28 development projects and initiatives with a total value of 1.9 billion Saudi riyals, all aimed at improving infrastructure and enhancing the efficiency of essential services that directly impact the lives of Yemeni citizens.
Work mechanism and strategic partnership
To ensure that support reaches those who need it most efficiently, the Saudi Development and Reconstruction Program for Yemen (SDRPY) signed a strategic agreement with the Yemeni Ministry of Energy and Electricity. Under this agreement, petroleum derivatives will be purchased directly from the Yemeni Petroleum Company (PetroMasila) to fuel more than 70 power generation plants. This mechanism aims to strengthen the capabilities of Yemeni national institutions, support the stability of the energy sector, and ensure the operation of vital facilities, thus providing a strong impetus for economic recovery and sustainable growth in Yemen.
Details of the grant and its developmental impact
The total quantity of petroleum products allocated in this grant is approximately 339 million liters of diesel and fuel oil, with a total value estimated at US$81.2 million. This support is expected to contribute to:
- Improving the operational efficiency of government institutions and public facilities.
- Improving medical services by ensuring a continuous power supply to hospitals and health centers.
- Supporting the education sector and providing a suitable environment in schools and universities.
- Facilitating transportation and logistics services at airports and ports.
- To promote trade and economic activity and improve the daily lives of our brothers in Yemen.
A long history of Saudi support for the energy sector
This grant is not an isolated event, but rather part of a long history of Saudi support for Yemen's energy sector. Records show a significant track record of oil grants provided by the Saudi Development and Reconstruction Program for Yemen, beginning with a $180 million grant in 2018, followed by a substantial $422 million grant in 2021, another $200 million grant in 2022, and now the current grant. This timeline underscores the Kingdom's unwavering commitment to supporting economic and service-related stability in Yemen.
