Plans to advance various infrastructure projects have been hit by a series of delays recently. Most worrying is the ongoing postponement of three independent power projects (IPPs), which had been in the pipeline for over a year. In 2009, the Ministry of Electricity and Energy launched the IPP programme which focused on the construction of three power plants around the country; two 150-mw plants in Aden and Hodeida, and a third plant with capacity of 75 mw in Mukalla on the south coast. The original tendering process for the build-own-operate-transfer projects in 2009 attracted interest from 40 companies. However, according to a Dubai-based business weekly, MEED, the government is still deliberating over the level of guarantees it is prepared to give the scheme.

These latest delays mirror similar problems experienced by the Marib power project, which took more than four years to get off the ground. However, Yemen needs power desperately; there were riots in Aden on account of blackouts in mid-2010. The daily shortage in Sanaa is estimated at 50 mw, and, according to the Ministry of Planning and International Co-operation, only 15% of rural areas are connected to the national grid. In recognition of this problem, the Development Plan for Poverty Reduction, 2006-10, aimed to double capacity to 2,114 mw, but this target was subsequently lowered to 1,829 mw in the 2009 mid-term review. New facilities, run on gas, should be far cheaper than the existing diesel powered-plants (which typically rely on imported fuel), making the country's supply more reliable and also cheaper. Currently, Yemen spends around US$1bn annually on fuel to meet its energy needs.

However, efforts to develop the rural grid are also facing problems. On February 8th the government issued a tender for consultants to advise on its rural energy access project, which is based on off-grid networks for remote areas. However, the next day the electricity and energy ministry cancelled its invitation for expressions of interest, without giving a reason.