NEWS

Sources: Saudi-Backed Hadramout Power Project Is BOT Contract, Not Unconditional Grant

Emergency power generators arrive in Hadramout, July 1, 2026 (Hadramout Local Authority/Facebook)

02-07-2026 at 8 PM Aden Time

Aden (South24 Center)


Well-informed sources told South24 Center that the power generators arriving in Hadramout Governorate are not an unconditional Saudi grant as has been circulated, but part of an emergency power project governed by an investment contract with Yemen’s Ministry of Electricity and Energy.


The sources said the project will operate under a Build-Operate-Transfer (BOT) model for six years before ownership is transferred to the state. They added that the generators will run on mazut, or fuel oil, with the Yemeni government bearing the operating fuel costs.


The sources did not deny that the project is backed by the Saudi Development and Reconstruction Program for Yemen (SDRPY), but said the public description of the project as a “grant” does not reflect its contractual and operational structure.


They said the arriving generators likely represent the implementation phase of the same emergency power project previously announced in Hadramout, with a total planned capacity of 200 megawatts — 100 megawatts for the coast and another 100 megawatts for the valley and desert.


The first batch of emergency power generators arrived in Hadramout from Saudi Arabia through the Al-Wadeeah border crossing on Wednesday, July 1, as part of an announced plan to improve the electricity grid and reduce the acute generation deficit.


Member of the Presidential Leadership Council and Governor of Hadramout Salem Al-Khanbashi said the generators are part of an emergency power plant project designated for Hadramout’s coast and valley, with a total capacity of 200 megawatts, funded by SDRPY.


Al-Khanbashi said local authorities are following up on the completion of technical and logistical arrangements to install the generators and bring them into service as quickly as possible, as a temporary solution pending the completion of permanent generation plants in the governorate.


In April, Al-Khanbashi laid the foundation stone for emergency power generation stations with a total capacity of 100 megawatts for Hadramout’s coast. The project includes the 40-megawatt Jawl Masah station and the 60-megawatt Ambikha station. Official statements at the time said a similar 100-megawatt project would be established for the Wadi and Desert of Hadramout.


Saudi media had described the Mukalla power plant project as being developed through a tripartite partnership involving SDRPY, Yemen’s Ministry of Electricity and Energy, and Gulf Power International Company, under a Build-Operate-Transfer model.


The Hadramout generators also come shortly after Saudi Arabia and Yemen signed a $150 million agreement to supply diesel and mazut to more than 70 power plants across several Yemeni governorates.


The emergency generators arrive as Hadramout, Aden, and other southern governorates are suffering from a chronic electricity crisis that worsens during the summer, amid rising demand for power and a widening gap between generation capacity and residents’ actual needs.


In recent weeks, Aden and Hadramout have witnessed widespread protests over the deterioration of basic services, particularly electricity, amid long power outages, rising temperatures, and growing living pressures on residents.


- South24 Center

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