Hadramout Investment Power Company Ltd (HIPC)

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About Us

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.

Vision & Mission


To improve quality of life of end user and society.

    ➤  To be the most reliable player for Supply & Operation of Power plants, running on Residual fuels, Gas, Fossil, Bio Fuels and other non-conventional energy sources.

    ➤  To be a key contributor to the growth of Power Projects in Yemen.

    ➤  To improve quality of life of end user and society.


To cater to the “Power need” of people of Yemen with reliability, Cost effectiveness and Environment friendliness.

    ➤  To cater to the “Power need” of people of Yemen with reliability, Cost effectiveness and Environment friendliness.

    ➤  To be the most cost effective & responsive support for meeting the Power demand in Yemen.

    ➤  To create bench mark Operation & Service facilities for Stationary Supply of Power in Yemen.

    ➤  To provide better value for money to PEC and the end user.


    ➤  Honesty & Integrity.

    ➤  Consumer Focus.

    ➤  Process & System Based approach.

    ➤  Earn trust through ethical and fair business practices with all Promoters & Stake holders.

    ➤  Achieve growth along with ecological balance.

Business Idea

To deliver cost effective quality services to Public Utility Corporation & Industry for Power Plant solutions, after sales services, and Operations.

HIPC is set up to oversee and lay an emphasis and focus on the following:

    ➤  Laying a strong foundation

    ➤  Operating Efficiency and Profitability

    ➤  Building the Company’s future by establishing more Power Projects in Yemen

    ➤  Contribution to Yemen economy and its people.

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.

(Expanding Capacities for growth)

    ➤  Industrial growth paving way for Economy growth

    ➤  Earning visibility to drive growth

    ➤  Financial support not an issue for growth

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.

Industrial growth paving way for Economy growth

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.

Earning visibility to drive growth

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.

Financial support not an issue for growth

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.

Project Success Factors

    ➤  On time Delivery and services

    ➤  Effective Quality system

    ➤  Global policy for Engineering / Project Management and work share

    ➤  Strong and coordinated Sub-supplier network

    ➤  Training and Skill improvement of employees

    ➤  Low employee turn-over (<15 %)

    ➤  Satisfied and loyal consumer


    ➤  Harmonized way of working

    ➤  Smooth Functioning of projects

    ➤  Reduced firefighting during Project stage

    ➤  Create knowledge database and effective sharing

    ➤  Reduce lead time

    ➤  Reduce efforts

Expected results

    ➤  Better control on quality

    ➤  Better control on costs

    ➤  Predictable delivery times

    ➤  No fire fighting

    ➤  Reduced overall project execution time

    ➤  Handle more no. of projects

    ➤  Getting prepared for new markets.

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 viewed with other competitors for its aggressive capacity expansion towards higher growth.

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