Hyundai fines PEC $1 .7 million

SANA'A, Feb. 22 (Saba) - The Public Electricity Corporation PEC has paid a fine of
$ 1.7 million for the Korean Hyundai Company which is currently implementing the
Sana'a-Mareb electricity distribution network, a source at the corporation has
confirmed.

Owing to the suspension of the company activities including the construction of 42
electric towers in Mareb since 2007 the fine was imposed, the source, which wished
not to be named, said.

Noteworthy, the company halted its activities because of outlaw acts and harassments
the company's employees faced while doing their job.

The company should have finished the project by early 2008.

The source added that the Korean Hyundai Company is demanding further compensations
for damages at some electric towers already implemented in the Bani Hushaish area,
in the infringement of Sana'a, because of sabotage acts that took place last year.

Clashes between some of al-Houthi followers and troops in the area, hampered the
implementation of electric towers.

People in the area also prevented the company from building transmission systems at
their own lands.

However, the source did not say how much the company is demanding, pointing out the
company will not seek further compensations until it finish the project under a
contract signed by the two sides.

The Electricity project between Sana'a and Mareb is financed by the Arab Fund for
Social and Economic Development.

About 92% of the project has been completed. It consists of three components.

The first component is the Sana'a-Mareb transmissions system, of which 448 electric
towers out of 490 have been implemented.

The second component is the line connecting the transmission station in the Bani
Hushaish area and the Dhahban station, of which 80 towers out of 89 have been
completed.

The third component is the Bani Hushaish-Hizyaz transmission system, of which 177
electric towers have been made of 184.