56 Public Works

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#SectorProject NameCost Mil. $DonorStatus and Required Actions 1

Public Works Rehabilitation and Widening of Sana’a to Al Hodeidah Road

106Arab Fund

- 11/72013: Agreement was signed and the effectiveness date was on 6/2/2014. - The tender documents were prepared and will be sent to the Arab Fund and HTB for approval. - Procedures for prequalification of contractors were completed, and the evaluation report will be sent to Arab Fund and HTB for approval. Required Actions: - The PIU to accelerate the process of sending the evaluation report for prequalification of contractors and tender documents to HTB and the Arab Fund for approval. - The PIU to develop a plan and time frame for the project implementation to be followed on a monthly bases. 2

Main Roads Program (maintenance and rehabilitation): Expansion through Sana’a - Taiz - Aden first 28 km section

40Kuwait

- The funding agreement with Kuwaiti Fund has not been signed. - There are some changes in the designs which were returned to the consulting firm for review. Required Actions: - MoPIC to follow up on signing the funding agreement. -The PIU to develop a plan and time frame for the project preparation and implementation. 3Construction of 5 Bridges in Mukalla and Aden30Saudi Fund - 2 bridges that are funded from the Arab Fund (remaining amount from the fund of Saihoot road), currently being implemented in Mukalla (Halah and Mukalla). The contract amount is 9.2 million US$ and implementation has reached 17%. - As for the bridge number 3 (Almunwera) in Mukalla, the tender document is being prepared and will be sent to Arab Fund for approval. With the cost estimate of 4 Million US$. - There is no available fund for financing the remaining 4 bridges that will be implemented in Mukalla. - As for Aden bridges (Caltex bridge), the designs and BOQ that have been submitted by the consultant are being reviewed by a specialized committee - The 30 million US$ from the Saudi Fund will be used for the new bridges in Al Mukalla and Aden.

ANNEX1: STATUS OF TWENTY-ONE SELECTED PROJECTS AND REQUIRED ACTIONS

[21개 주요 프로젝트 추진현황] MAF 2014 Annual Status Report (2014.12)

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SectorProject NameCost Mil. $DonorStatus and Required Actions

Education Establishing a community college in Socotra + Equipping 12 National Wide Community Colleges

60Kuwait

- 3/2/2014: Agreement was signed and approved by the parliament. - Designs of Socotra Community College were updated; however, the design studies did not cover the lower layers of the site. - Negotiations with the consultant about the modified design and cost of the successive supervision to be held and to cover the study of the project site layers. - Only 4 colleges were completed 100% and ready to accommodate the equipment to be provided. - There is a need to bridge the funding gap to complete the construction work and other services such as electricity, water for the rest of the colleges that are not ready to accommodate the equipment. - 7/7/2014: Operating budget for the first half of 2014 (40 million YR) was released by MoF. - 13/7/2014: A detailed for the second half of 2014 (80 million YR) was prepared and raised to MoF. Required Actions: - MoF to provide the required operating budget to meet the field surveys and preparation of technical studies, specifications and tender documents. - MoF to provide the needed budget to complete the construction work and other services such as electricity, water for the rest of the colleges that are not ready to accommodate the equipment. Equipping 40 Vocational and Technical Institutes in many Provinces including a Military Technical Institute in Sana’a.

80Saudi Fund

- 2/4/2013: Agreement was signed and approved. - Regarding equipping the Technical Military Institute: Implementation of this component was delegated to the management of the institute with support from the PMU. - Technical specifications of the equipment required for the 39 technical and vocational training institutes have not been prepared, due to the lack of the operational budget required for field studies. Required Actions: - MoF to provide the budget needed for field surveys, and preparation of technical specifications and tender documents. Development of Hadramout University: Construction & Equipment of Colleges

100Saudi Fund

- Saudi Fund agreed to include the projects within the Saudi grant. However, the funding agreement is not yet signed - IU prepared the designs and studies for the project. Required Actions: - MoPIC to follow up on signing the funding agreement. - The PIU to prepare an implementation plan.

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Education Equipping existing Faculties: Sana’a, Ibb, Taiz and Aden Universities

30Saudi Fund

- As for the Faculty of Pharmacy at Aden University, there is an initial agreement from the Saudi Fund to provide funding of 6 million US$, and it was expected to sign the agreement on October (according to an official letter from Aden University in this regard). - As for the Faculty of Engineering and Dentistry at Sana’a University, Faculty of Dentistry at Ibb University, and equipping a faculty at Taiz University, detailed list of needs have already been developed and submitted to MoPIC. - It was agreed with MoPIC that the PIU of Sana’a University will implement the project’s components for equipping the faculties of Taiz, Ibb and Sana’a universities. - According to MoPIC the allocation will be distributed as follows: 1. 15 million US$ to equip the Faculty of Engineering and Dentistry at Sana’a University. 2. 6 million US$ to equip the Faculty of Pharmacy at Aden University. 3. 8 million US$ to equip Faculties of Pharmacy and Dentistry at Ibb and Taiz Universities. - The PIU prepared the documents for the required equipment. Required Actions: - MoPIC to follow up on signing the funding agreement. 8Basic Education Development Project II66WB

- June 2013: Project started implementation. - The first and third components of the project are being implemented by the MoE and the PAU while second component is being implemented by PWP - As for the second component (construction and rehabilitation of schools), contracts of 80% of the allocation were signed. - There is a delay in the consultancy works, due to delay in preparing the ToRs by the specialists in the ministry (according to the PIU progress report in August 2014). 9

Water Improving Water and Sanitation Systems in Yemeni Provincial Towns

55Germany

- September 2010: The agreement was signed and approved. - Projects in Jaar and Zanzibar have been suspended because of the security situation. - Four projects have been suspended in Shahr because of the security situation and the threat on the supervising consultant by the citizens robbing his car and threating to kill him, which resulted in cancelling the project. Conflict is currently being settled and contract of the contractor has been terminated. - Sa’ada: The project is suspended due to frequent change in PMU management. In addition to the security situation in the province. - The project has been subjected to reprogramming and there is a second proposal for restructuring the project again through allocating part of the project funds for procurement of machinery & equipment for Water Corporations. - Invitation for qualification of consulting firms has been issued. Required Actions: - The MoWE and KFW to speed up the procedures with regard to the approval of procurement procedures and reprogramming the project including converting part of the project components for procurement of machinery & equipment. - Follow up the local authorities in governorates to take the necessary actions to activate the projects in Sa’ada and Sheher.

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Education Equipping existing Faculties: Sana’a, Ibb, Taiz and Aden Universities

30Saudi Fund

- As for the Faculty of Pharmacy at Aden University, there is an initial agreement from the Saudi Fund to provide funding of 6 million US$, and it was expected to sign the agreement on October (according to an official letter from Aden University in this regard). - As for the Faculty of Engineering and Dentistry at Sana’a University, Faculty of Dentistry at Ibb University, and equipping a faculty at Taiz University, detailed list of needs have already been developed and submitted to MoPIC. - It was agreed with MoPIC that the PIU of Sana’a University will implement the project’s components for equipping the faculties of Taiz, Ibb and Sana’a universities. - According to MoPIC the allocation will be distributed as follows: 1. 15 million US$ to equip the Faculty of Engineering and Dentistry at Sana’a University. 2. 6 million US$ to equip the Faculty of Pharmacy at Aden University. 3. 8 million US$ to equip Faculties of Pharmacy and Dentistry at Ibb and Taiz Universities. - The PIU prepared the documents for the required equipment. Required Actions: - MoPIC to follow up on signing the funding agreement. Basic Education Development Project II66WB - June 2013: Project started implementation. - The first and third components of the project are being implemented by the MoE and the PAU while second component is being implemented by PWP - As for the second component (construction and rehabilitation of schools), contracts of 80% of the allocation were signed. - There is a delay in the consultancy works, due to delay in preparing the ToRs by the specialists in the ministry (according to the PIU progress report in August 2014).

Water Improving Water and Sanitation Systems in Yemeni Provincial Towns

55Germany

- September 2010: The agreement was signed and approved. - Projects in Jaar and Zanzibar have been suspended because of the security situation. - Four projects have been suspended in Shahr because of the security situation and the threat on the supervising consultant by the citizens robbing his car and threating to kill him, which resulted in cancelling the project. Conflict is currently being settled and contract of the contractor has been terminated. - Sa’ada: The project is suspended due to frequent change in PMU management. In addition to the security situation in the province. - The project has been subjected to reprogramming and there is a second proposal for restructuring the project again through allocating part of the project funds for procurement of machinery & equipment for Water Corporations. - Invitation for qualification of consulting firms has been issued. Required Actions: - The MoWE and KFW to speed up the procedures with regard to the approval of procurement procedures and reprogramming the project including converting part of the project components for procurement of machinery & equipment. - Follow up the local authorities in governorates to take the necessary actions to activate the projects in Sa’ada and Sheher. SectorProject NameCost Mil. $DonorStatus and Required Actions

Water Construction of a steel water pipeline from Mocha to the city of Taiz including pumping stations and reservoirs + Desalination Station

280Saudi Fund & S. Export Fund

- The project documents are prepared. However, the funding agreements were not signed because of the funding gap. - July 2014: Saudi Fund agreed to cover the funding gab of 100 million US$ (Total funding will be 280 million US$: 180 million$ grant from the Saud Fund and 100 million US$ loan from the Saudi Export Fund). It was agreed to sign the agreement in August and in September the consultant commence working on updating and reviewing the studies and other related documents as well as the ToR for the staff. However, agreements have not been signed. - Because of the security situation of the Saudi team was unable to visit Yemen and sign both agreements. - The problem of the required power to run the desalination station which is estimated at 30 MW was resolved through an agreement between the Ministry of Water and the Ministry of Electricity and Energy to provide the power from Mocha Wind Station. - The project manager appointed, but due to lack of local budget to cover the cost of the salary payment at the start-up stage, it is proposed that the time of launching the PIU starts in parallel with the signing of the grant and loan. - Land tenure issue solved. Required Actions: - The Saudi Fund and Saudi Export Fund to sign the funding agreements. - UWSSP and the project manager to hire a consultant to update and review the studies and other relevant documents in addition to the preparation of terms of reference for project staff. - UWSSP and the project manager to hire a consultant specialized in water desalination highly qualified and experienced and efficient to provide technical advice during the various stages of the implementation of the project. - UWSSP and the project manager to establish the PIU for the project. - MoF provide the operational budget in order to launch the PIU and start in the recruitment of the staff. Water and Sanitation in Secondary Cities: Construction of water distribution network, sanitation networks and treatment stations

50Kuwait

- The project is allocated, but not approved. - Project Manager has not been hired. - Kuwaiti Fund requested a proposal for the project to be submitted for funding of 50 million US$. - The proposal was sent to the Kuwait Fund, but no reply from them and they asked to prepare a project evaluation document (Project Appraisal Document). - The project evaluation document (Project Appraisal Document) has been prepared, and is currently being reviewed by the project (UWSSP) and hence to be raised to the Kuwaiti Fund for funding. - A project evaluation document (Project Appraisal Document) for the rural areas is currently being prepared to be raised for the Kuwait Fund for funding 0f 50 million US$, according to an agreement with them. Required Actions: - The PIU (UWSSP) to complete reviewing the Project Appraisal Document (PAD) for secondary cities and submit it to the Kuwaiti Fund. - The PIU (UWSSP) to complete reviewing the Project Appraisal Document (PAD) for rural cities and submit it to the Kuwaiti Fund. - MoPIC to follow up on signing the funding agreements.

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Electricity Establishing a Gas- Fired Power Station with a Capacity of 400 MW at Ma’abar

200Saudi Fund- 2007: Feasibility study was prepared. - 2009: Tender documents for the station were prepared. - The project has faced three obstacles: 1. The construction site is located within an earth fault. 2. Lack of definitive data on the proven gas reserves. 3. The relationship with the private sector regarding this project. Several meetings with the concerned stakeholders have been held to address these three issues. Required Actions: - MoEE and SEC to decide on the construction site issue. - MoM to provide an official letter on the proven gas reserves available for the project. - MoLA to resolve the issue with the private sector.

13Construction of Natural Gas Pipeline (Ma’abar / Dhamar)180Saudi fund& Saudi Export Fund 14 Constructing the Transmission Line Ma’abar – Dhamar and the Transfer Stations

75Saudi Export Fund 15

Transformation and Distribution of Power Project from Maarib: Northern Line (the remaining part) Al Qanwis 63.5Saudi Export Fund

- Saudi Fund allocated 15 million US$ grant to the project “Contribution to the financing of produced power distribution lines from the gas station in Marib,” while the total cost is 63.5 million US$, in which 14 million US$ is to be negotiated with the Saudi Export Fund and 15 Million$ is in discussion with the Islamic Development Bank. 7.6 million US$ is the GoY contribution (Customs, Taxes, etc). The funding gap is at 11.9 million US$. - The project documents were prepared and raised to MoPIC last October. Required Actions: - MoEE to liaise with MoPIC to bridge the gap and launching the project within the available fund. 16Establishing the Mokha Station Wind Capacity of 60 MW120OPEC,WB, Arab Fund, Saudi- The tender documents to be announced within December 2014. 17

Health Construction of King Abdullah Medical City in Sana’a (Phase1)

200Saudi Fund

- End of 2013: Implementation of the project started. - The location of the land is in Al Hafa Military Camp, Khawlan St. Based on the decision that was taken by the steering committee, the department of military works was assigned to build the fence and set up the land. committee, the department of military work was assigned to build the fence and set up the land. - MoF rejected the request for payment because the contract was not approved by HTB. - HTB refused to approve the contract since it against the taken procedures. - Contracting the consultant is ongoing. - An agreement was reached between the PIU and HTB to restart the procedures of assigning the department of military work.

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Health Construction and Equipping the University Hospital in Aden

50Arab Fund

- 11/7/2013: Loan agreement was signed. - The project was handed over by the externally funded projects implementation unit in the Ministry of Health to the project implementation unit of the University of Aden. - Tendering procedures is ongoing.

Agriculture

Rural development Program: promoting agriculture production and productivity in Dhamar, Al- Dala’a, Lahej, Taiz, Hodiedah, Ibb and Rimah Governorates.

168

Kuwait, Islamic Bank, IFAD, EC, + (6 other donors)

- June 2014: Agreement with IFAD was signed and approved by the Government and the Parliament. - September 2014: Loan agreement was signed with the Kuwaiti Fund and approved by Council of Ministers and is still need approval by the Parliament. - September 2014: Loan agreement was signed with the Islamic Bank and approved by the Council of Ministers and the Parliament. - The rest of the grants have been signed and approved by the Parliament. - Local Budget for 2014 has not been provided or allocations for retroactive financing, while withdrawal from the loans or grants before the completion of project effectiveness is not allowed. - The project office space has not been provided, in accordance to the agreement conditions (to be provided within the office of the Agriculture and Fisheries Production Promotion Fund). - April 2014: PMU Manager was appointed. Recruitment of staff was announced, which includes PIUs managers in the five provinces, financial manager, procurement manager, accountant, and M&E manager in the main unit in Sana’a. - 6/10/2014: The shortlist was approved by IFAD. However, the recruitment has not been completed. Required Actions: - To follow up on the approval by the parliament of the loan agreement that has been signed with the Kuwaiti Fund for Development. - Local authorities to provide a suitable office space for the project in the targeted governorates. - MoF to provide the required operational budget for the project.

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#SectorProject NameCost Mil. $DonorStatus and Required Actions 20 Transportation

Completion of the Development of Sana’a International Airport 600Arab Fund and Islamic Bank

Terminal Building: - Donor: Arab Fund for Economic and Social Development Status of Terminal Building Part: - 16/2/2014: Contract was signed with the consultant to prepare the detailed designs, the cost estimate and tender documents and supervise the implementation of the project. - 22/6/2014: Invitation for prequalification for contractors was issued. - 11/9/2014: Tender documents and detailed designs have been submitted to HTB for approval. HTB requested the PMU to resubmit the documents considering the comments provided by the donor - Loan amount is 90 million US$ of which 30 million US$ consumed by the Chinese Company during the first phase. - The updated estimated cost of the Terminal Building and concrete works is 180 million US$. - Arab fund committed to cover the funding gap. Required Actions: - MoPIC to follow up the signing of the financing agreement with the Arab Fund to cover the funding gap of 120 million US$ required for Terminal Buildings and Concrete Works. - The PIU to include the comments of the donor in the tender document and raise it to HTB and the donor for approval. - Accelerate the invitation of shortlisted firm for providing bids. Air Field and Related Buildings: - Donor: Arab Fund and Islamic Development Fund - 16/2/2014: The contract with the consulting firm for updating the detailed designs, the cost estimate and the tender documents was signed. - 14/7/2014: The consultant submitted the detailed designs, estimated cost and tender documents. A workshop will be held for review and approval of the report before submitting them to HTB (Three tenders - one international and two local tenders related to the internal roads, roads around the airport and firefighting buildings). - 4/6/2014: HTB approved the prequalification document for international contractors. - 20/8/2014: Prequalification of contractors for the second phase of the project was issued and offers already opened. - 6/11/2014: Prequalification of a number of companies was completed and the evaluation report was submitted to HTB and to the Arab Fund on 26/10/2014 for approval. - It was agreed by Arab Fund and HTB that the other two parts of the project will be awarded to local contractors and subjected to post qualification process. - Estimated cost of the updated design of the Air Field and Related Buildings is 420 million US$. - Available funds are: 260 million US$ as follow: 160 million US$ agreement was signed four year ago with Arab Fund and 100 million US$ from Islamic Bank. - The financing gap is 160 million US$. Required Actions: - MoPIC to find financial resources to cover the funding gap of 160 million US$ for the Air Field as the consulting company has already been hired to supervise the contractors, and the tender of prequalification of contractors has been announced. - HTB and Arab Fund to accelerate the approval of the evaluation report. - The PIU to accelerate the invitation for bids from the pre-qualified companies.

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Transportation Completion of the Development of Sana’a International Airport

600Arab Fund and Islamic Bank

Terminal Building: - Donor: Arab Fund for Economic and Social Development Status of Terminal Building Part: - 16/2/2014: Contract was signed with the consultant to prepare the detailed designs, the cost estimate and tender documents and supervise the implementation of the project. - 22/6/2014: Invitation for prequalification for contractors was issued. - 11/9/2014: Tender documents and detailed designs have been submitted to HTB for approval. HTB requested the PMU to resubmit the documents considering the comments provided by the donor - Loan amount is 90 million US$ of which 30 million US$ consumed by the Chinese Company during the first phase. - The updated estimated cost of the Terminal Building and concrete works is 180 million US$. - Arab fund committed to cover the funding gap. Required Actions: - MoPIC to follow up the signing of the financing agreement with the Arab Fund to cover the funding gap of 120 million US$ required for Terminal Buildings and Concrete Works. - The PIU to include the comments of the donor in the tender document and raise it to HTB and the donor for approval. - Accelerate the invitation of shortlisted firm for providing bids. Air Field and Related Buildings: - Donor: Arab Fund and Islamic Development Fund - 16/2/2014: The contract with the consulting firm for updating the detailed designs, the cost estimate and the tender documents was signed. - 14/7/2014: The consultant submitted the detailed designs, estimated cost and tender documents. A workshop will be held for review and approval of the report before submitting them to HTB (Three tenders - one international and two local tenders related to the internal roads, roads around the airport and firefighting buildings). - 4/6/2014: HTB approved the prequalification document for international contractors. - 20/8/2014: Prequalification of contractors for the second phase of the project was issued and offers already opened. - 6/11/2014: Prequalification of a number of companies was completed and the evaluation report was submitted to HTB and to the Arab Fund on 26/10/2014 for approval. - It was agreed by Arab Fund and HTB that the other two parts of the project will be awarded to local contractors and subjected to post qualification process. - Estimated cost of the updated design of the Air Field and Related Buildings is 420 million US$. - Available funds are: 260 million US$ as follow: 160 million US$ agreement was signed four year ago with Arab Fund and 100 million US$ from Islamic Bank. - The financing gap is 160 million US$. Required Actions: - MoPIC to find financial resources to cover the funding gap of 160 million US$ for the Air Field as the consulting company has already been hired to supervise the contractors, and the tender of prequalification of contractors has been announced. - HTB and Arab Fund to accelerate the approval of the evaluation report. - The PIU to accelerate the invitation for bids from the pre-qualified companies. SectorProject NameCost Mil. $DonorStatus and Required Actions

Transportation Construction of a Seaport in Broom area, Mukalla, Hadramout

150

120 Saudi Fund + 30 GoY

- The project agreement has not been signed. - 4/3/2014: PIU Manager was appointed, but has not started his tasks due to lack of operational budget. - Staff has been selected but not recruited until the project agreement is signed and the operational budget is made available. - 14/7/2014: A decision was taken by the government regarding the selection of the project site in Broom instead of Al Dhabah. Required Actions: - The Saudi Fund to adopt the government’s decision on the selection of the project site in Broome area. - To follow up with the Saudi Fund to sign the grant agreement. - MoF to provide the operational budget for the project.