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31 October 2007 - Yemen has nullified a contract with a US company for building a nuclear reactor intended to help the country make up for the shortfall in electricity supplies, a state-run newspaper reported Wednesday.
The al-Thawra daily said the decision was taken by the cabinet on Tuesday 'after the government received information that the US company Powered Corporation was not qualified to carry out the project.'
A newly established governmental anti-corruption commission asked the government last week to cancel the agreement following a big fuss by opposition media that challenged the US firm's competency to execute the project.
Yemen's Ministry of Energy and Electricity signed the agreement with Powered Corporation on September 24, under which the US firm would prepare studies needed to build a nuclear reactor with production capability of 5000 MW.
Yemen, an impoverished country on the south-western tip of the Arabian peninsula, has a shortage of power production and its cities suffer from daily power outages.
The entire power production capacity of the country's two main power plants is approximately 900 MW, which serves only about half of the population.
In October 2006, Yemeni President Ali Abdullah Saleh said his country was negotiating with US and Canadian firms to construct a nuclear power production plant in Yemen.
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