Failed Development Projects in Yemen
Yes well I guess after a decade you can presume they are just not going to get completed. Even free land grants wasn’t enough motivation.
The government’s investment authority announced Tuesday that it has cancelled 189 projects financed by Yemeni and Gulf investors, including projects that have not yet been implemented after ten years of planning.
The Manager of the Hadramout Investment Authority Khalid al-Sa’di explained that the 189 projects were cancelled as a result of investor negligence, following the grace period of four months given to them by the Hadramout governor. The governor’s actions came from directions issued by the President, which stipulated the cancellation of the licenses for projects after a designated expiry date. He highlighted that these measures were especially necessary for projects where no work has been done in the ten years since the issuance of the licenses.
Last year, the President ordered the cancellation of the land licenses of investors who had failed to begin their investment projects in Hadramout, despite the free land offered to them ten years ago.
A joint study conducted by the General Investment authority, the German GTZ and the Private Sector’s Development Project PSDP disclosed that 86 Yemeni, foreign and Gulf backed projects had failed. During a workshop held in Aden to discuss the reasons for the failures, it was revealed that most of the projects which failed were those granted to small, private companies.
The authority added that the rate of failure for construction companies was 73 percent, the rate of failure for corporate companies was 67 percent, and for limited liability companies 60 percent. Public Shareholding Companies represented the lowest rate of project failure, boasting a failure rate of just 11 percent.
The highest rate of project failures was found in projects targeting the agricultural and livestock sector, with a failure rate of 95 percent. The services sector records showed a failure rate of 92 percent, while the real-estate sector witnessed a failure of 89 percent. Finally, the rate of failure for projects in the tourism sector was 62 percent.
