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Hadramout Investment Power Company Ltd., (HIPC) is established with a focus on consistent growth, professionalism and dynamism. The company cares for its people with more job opportunities and the benefits it brings to Yemen Economy. It firmly believes that their employee’s career growth is as important as its own growth.
The Company is registered in Sana’a under companies’ law no. 904 is the first Independent Power Producer (IPP) in Yemen with its first ever biggest private Power Plants of 75 MW, Heavy Fuel oil (HFO) based (capable of conversion to gas) commissioned in the month of June, Year 2010 at Mukalla (Al Harshiyat), Republic of Yemen and ever since is under commercial operation for supply to Public Electricity Corporation under the Ministry of Electricity and Energy. Initial Operations began in June 2010 on a temporary basis at 11kV voltage level followed by full scale Operations from 12th August 2010 at 33kV voltage level. Initial contracted capacity with PEC is 25 MW followed by 40 MW this year, 2011 and is further set to increase in near future. In addition to supply to PEC, HIPC has planned to supply its associate concern MISC (Mukalla Iron & Steel Company Ltd.) at Al Mukalla, Yemen once the Steel Plant commercial operations begin.
Presently, with the onset of summer, the Power Plant is operating to its full capacity with a peak load reaching up to 65 MW. With the high demand off late in this region, there is every possibility of expansion in the near future in this region.
To deliver cost effective quality services to Public Utility Corporation & Industry for Power Plant solutions, after sales services, and Operations.
The Promoters of the Company conceived the idea in view of the grim situation of the power availability in the Al Mukalla Hadramout Coastal region and decided to set up the power plants to make available the cheap and uninterrupted power to PEC and the upcoming industrial units via separate transmission lines and through the PEC GRID.
HIPC as an Independent Power Producer makes the first move for supply to Public Utility Corporation and other Industrial units. We believe that the companies that add capacities regularly would be in a position to show consistent growth in both revenue & profits. HIPC expects to outperform other players in the power utility space.
We believe Yemen Power Sector will grow more the pace as the growth in the economy and the growth in electricity generation needs to keep pace. We expect the Yemen power segment will achieve within the next 5 years what it was able to achieve over the last two decades.
HIPC is poised to take advantage of this as we will be adding substantial capacities while there may be laggards with other suppliers vying for the same.
In a power deficit scenario as in Yemen, where peak and energy shortages are very high and given the assured returns in the industry, adding capacities translates into higher profits. Hence our view that companies that add generation capacities will benefit in terms of higher returns.
HIPC believes that the power generation space would require more investments in the coming five years to meet the planned targets. HIPC do not foresee funding as a major concern, especially for projects with the backing of strong players.
The power plant is designed in accordance to the latest international design criteria and meets the World Bank environmental requirements. The power plant is capable to deliver power on 11 and/or 33 kV voltage level in parallel with PEC or island modes. Heavy fuel oil is the main source of fuel, while diesel fuel is used only for starting and/ or stopping, during Overhauls of the generating sets or in case of emergency due to unavailability of heavy fuel oil.
All the DG sets are of Wartsila make, Finland. Wartsila has been in the field of designing Diesel Engines, manufacturing DG Sets and providing product support for Stationary as well as Marine segments for over 100 years now. Their experience in the field is behind the development of State of the Art Technology in Diesel Engine design.
HIPC believes, will be given a higher valuation in future and accorded a premium for capacity addition coupled with lower execution and implementation risks when vied with other competitors for its aggressive capacity expansion towards higher growth.
