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Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
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Name : |
PUBLIC ELECTRICITY CORPORATION (PEC) |
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Registered Office : |
Airport Street, 178 Sana’a |
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Country : |
Yemen |
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Date of Incorporation : |
Not Available |
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Com. Reg. No.: |
Not Available |
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Legal Form : |
Government Corporation |
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Line of Business : |
Subject is supplying electricity generated by the national power system, which consists of three electricity generation and distribution grids |
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No of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Yemen |
C1 |
C1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
YEMEN - ECONOMIC OVERVIEW
Yemen is a low income country that is highly dependent on declining oil resources for revenue. Petroleum accounts for roughly 25% of GDP and 63% of government revenue. Yemen has tried to counter the effects of its declining oil resources and continuing attacks on its oil pipelines by diversifying its economy through an economic reform program initiated in 2006 that is designed to bolster non-oil sectors of the economy and foreign investment. In October 2009, Yemen exported its first liquefied natural gas as part of this diversification effort. In January 2010, the international community established the Friends of Yemen group that aims to support Yemen's efforts toward economic and political reform. In 2012, the Friends of Yemen pledged nearly $7 billion in assistance to Yemen. The Yemeni Government also endorsed a Mutual Accountability Framework to facilitate the efficient implementation of donor aid. The unrest that began in early 2011 caused GDP to plunge almost 11% in 2011. Availability of basic services, including electricity, water, and fuel, has improved since the transition, but progress toward achieving more sustainable economic stability has been slow and uneven. Yemen continues to face difficult long-term challenges, including declining water resources, high unemployment, severe food scarcity, and a high population growth rate.
|
Source
: CIA |
PUBLIC ELECTRICITY CORPORATION (PEC)
Location : Airport Street
PO Box : 178
Town : Sana’a
Country : Yemen
Telephone : (967-1) 328141
Facsimile : (967-1) 328150
Email : ypecnt@y.net.ye
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Sana’a.
Branch Office
(s)
Location Description
·
Aden
Main Street Office
premises
PO Box: 5245
Aden
Tel: (967-2) 242973 / 241952
Fax: (967-2) 244621 / 241953
Name Position
·
Yahya Al
Abyadh Minister
for Electricity & Water
·
Khalil Abdul
Malik Director
General
Operations: The Public Electricity Corporation (PEC) is
responsible for supplying electricity generated by the national power system,
which consists of three electricity generation and distribution grids. However,
Yemen's electricity-generating capacity is inadequate for the country's needs.
Many rural areas are not covered by the grid and depend on their own generators
for the limited supply that they can have.
Fluctuating voltage
supplies and constant blackouts limit economic output and investment. Some
factories operate on only one shift per day because of power shortage.
Industrial concerns, hospitals and hotels have their own back-up generators.
Shortage of money
is holding up plans to improve electricity. The price of electricity has been
raised considerably since 1995 and yet continues to be subsidised for the
public although at an increasing rate of subsidy. PEC collects a relatively small
proportion of its accounts and has no surplus for expansion. Indeed, according
to the World Bank, in 1996 PEC required a cash transfer of about YR 4 billion
to cover its operating deficit. In August 2001, electricity prices were
increased by 15-38% to help restore the financial viability of the Public
Electricity Corporation.
Given the vast
number of villages scattered around the mountains, rural areas are not likely
to be added to the national grid. The World Bank is promoting small
electricity-generating projects to help meet the energy demand in these areas.
In 1998 it also granted a US$ 60 million loan to improve power supply in
Sana’a.
The Public
Electricity Corporation (PEC) operates the following power stations:
·
Dhban
power station - Sana’a
·
Al Hkali
power station - Hodeidah
·
Osefera
power station - Taiz
·
Al
Mansoura power station - Aden
Year Generated
(m kwh)
1993 2,051
1994 2,159
1995 2,398
1996 2,457
1997 2,482
1998 2,567
1999 2,756
2000 3,038
2001 3,255
2002 3,387
2003 3,705
2004 4,089
2005 4,514
2006 4,621
2007 5,673
Yemen generated 2.4
billion kilowatt-hours of electricity in 1999 on installed capacity of 810
megawatts (MW), all oil-fired. Yemen's two largest power plants are the
165-MW power station at Ras Kanatib, near Hodeidah, and the 160-MW Mukha
station.
Government plans
for the power sector call for privatising all generators having a capacity of
less than 5 MW, and also for selling generators of 5 MW-20 MW through public
offerings.
In recent years,
Yemen has started on some modest projects to expand and improve its power sector.
On July 8, 1997, Yemen's Public Electricity Corporation (PEC) completed work on
linking the southern and northern electricity grids. The grid linkage was
funded by the Kuwait-based Arab Fund for Economic & Social Development,
which provided $54 million of the $64 million required for the project. Yemen
undertook a World Bank-funded upgrade of the Dhaban power plant to 50-MW total
capacity.
The Mukalla power
project involved the construction of a 40-MW diesel-fired plant, six
substations, and the laying of 62 miles of transmission lines. Wartsila NSD
Corporation, the Dutch branch of Finland's Wartsila Diesel, started work on the
plant in mid-1997 and construction was completed in 1998. Wartsila also
completed the Aden power project, which involves building a 30-MW plant to
serve the city's port. The new plant is part of the redevelopment of Aden,
which was heavily damaged in the 1994 civil war. The company won the
construction contract in late 1997 from Yemen Investment and Development
International, the consortium leading the redevelopment of Aden port.
Adair International was awarded a contract for a 21-MW plant near the port in
January 2001.
Yemen continues to
face serious power shortages, and has announced plans to reform the country's
power sector, and to double power generating capacity. Yemen also has said that
it plans to invite offers on the country's first private power station.
Current plans call for the construction of a 400-MW privately owned gas-fired
plant near the Marib oil and gas field.
In August 2013,
subject inaugurated a new 54MW power plant which is claimed to have taken a
“record 23 days” to construct. Located in the province of Aden, it is expected
to generate enough energy to power around 150,000 homes – or provide up to 15% of
the province’s summer electricity demand.
Subject is a
Government Corporation and as such is not legally required to make their
accounts public and no financial information was released by the company or
submitted by outside sources.
·
Arab
Bank Plc
Zubairi Road
PO Box: 475 & 1301
Sana'a
Tel: (967-1) 276585 / 276593
Fax: (967-1) 276583
No complaints
regarding subject’s payments have been reported.
Amount overdue 0 0
Payment terms 180
days 180
days
Payment Method Letters
of Credit Letters
of Credit
Paying record No
Complaints No
Complaints
Currency Pounds
Sterling Euros
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 59.05 |
|
|
1 |
Rs. 99.61 |
|
Euro |
1 |
Rs. 80.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
DPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and principal
sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.