The political and security situation in Yemen has had a devastating impact on the economic performance of the country. In June 2014, armed conflict between the government and militias spread across much of Yemen, which has caused the destruction of infrastructure leading to constrained oil production, severe fuel shortages and widespread power cuts.
With regard to legislation, the National Interagency Drafting Committee began working on a new PPP Law in June 2013 and produced the first draft of the law in August 2013. Successive versions of the draft law were developed and the latest draft (the 4th) was completed in January 2014.
The draft PPP law envisaged a PPP Unit within the Ministry of Planning.
In November 2014, a Memorandum of Understanding (MoU) between the government and the Yemeni private sector was signed to foster the use of PPPs in order to achieve economic growth and sustainable development.
Yemen has had some experience with PPPs via the Aggreko Al Hudaydah Power Stations 1 and 2 and container terminals at Aden and Ma’alla in the late 2000s. As of November 2016, the PPP project pipeline includes projects in the following sectors, among others: housing, health, electricity, transportation, industrial, water and fisheries.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.