Yemen cancels nuclear contract

01 November 2007

The Yemeni cabinet has cancelled anagreement between the Ministry of Electricity & Energy and PowerEdCorp of the USA, according to the SABA, news agency. Under the $15billion agreement, signed on 24 September, PowerEd Corp was toconstruct five nuclear power reactors in Yemen with a total capacity of5000 MWe - enough to power the country more than six times over.However, the Yemeni government decided to cancel the deal after thedisclosure of "information that the company is unqualified to carry outthe project." An official from Yemen's anti-corruption authority toldthe Kuwait News Agency (KUNA) that the decision to cancel was motivatedby his organization's request to suspend the contract. The suspension,he said, was to investigate violations by officials at Yemen'sElectricity & Water Ministry to grant the contract to PowerEd Corp,which is owned by a Yemeni national. KUNA reported that the USSecurities and Exchange Commission had warned that PowerEd Corp's"overall standing was volatile, did not have any ventures in its fieldand had quite a financial deficit which made it very risky forinvestors." The company's website reads: "Those who dream and innovatehave led the way for energy throughout modern history."

Further information

PowerEd Corp

WNA's Emerging Nuclear Energy Countriesinformation paper

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