|Reference id||aka Wikileaks id #244426 ?|
|Subject||Royg Requests U.s. Funding For Top Ten Economic Priorities Consultancy|
|Origin||Embassy Sanaa (Yemen)|
|Cable time||Wed, 20 Jan 2010 14:45 UTC|
|Classification||UNCLASSIFIED//FOR OFFICIAL USE ONLY|
|History||First published on Wed, 24 Aug 2011 03:21 UTC (original)
Modified on Thu, 1 Sep 2011 23:24 UTC (diff from original)
The ROYG is slowly bleeding its treasury dry with expensive but politically sensitive energy subsidies, gross inefficiencies and corruption at the Aden Refinery Company, and slow progress in switching the country’s network of power plants to more efficient, cheaper, and available natural gas. Members of Ahmed Ali’s National Investment Committee want McKinsey to help wean the ROYG away from an overpriced, no-bid contract under which diesel generators are leased from a British firm and instead lease natural gas-fired generators. The savings incurred would generate hundreds of millions of USD in revenue for the ROYG annually. Although McKinsey also proposes to tackle corruption throughout the power sector value-chain, including the Aden Refinery and the sale of the ROYG’s crude oil production, these reforms are unlikely to be implemented, as they threaten the commercial interests of many in the ruling class.