RIYADH, 12 November — The Saudi Fund for Development yesterday granted a $50 million (SR187 million) loan to Yemen to finance the construction of a gas-fired power plant in the Maareb region. Finance and National Economy Minister Dr. Ibrahim Al-Assaf, who heads the fund, and Yemeni Minister of Planning and Development Ahmad Soufan, signed the loan agreement in Riyadh.
Al-Assaf said the project aims to provide Yemen a strategic source of electricity to meet soaring demand by the population and the industry.
More than 30 percent of loans provided by the fund to Yemen were allocated to the power sector and this is the 23rd project in Yemen financed by the fund.
The new power plant, with a 300-megawatt capacity, will be completed by 2005 at a cost of $225 million.
Al-Assaf said a new study is being conducted to link the two countries with an electricity power grid.
"The project is possible after the setting up of an internal power grid within Yemen," he added.
