By Kebba AF Touray
Gambia’s Energy Minister Nani Juwara, has said the country owes over US$24 Million (approximately One Billion, Six Hundred and Thirty-Two Million Dalasi) in energy contracts to Senelec and KARPOWER.
Mr. Juwara said this while responding to a question from the member for Banjul North, Hon. Muhammed L. Bah.
In his question, Hon. Bah asked the Minister for Energy to inform the Assembly how much the Gambia owes Senelec and KARPOWER, and why the accumulated debt.
In his response, Energy Minister Juwara said as of September 30, 2024, outstanding invoices from June, July, and August from KARPOWER were US$8.4Million, while the Senelec was CFA 9.8 Billion, equivalent to a total of US$16.1 Million.
“The delay in payments is mainly attributed to the cash flow challenges faced by NAWEC, due to the non-cost reflective tariff, compounded by the rising cost of foreign currency, because both KARPOWER and Senelec require payments in foreign currencies which continue to appreciate against the Gambian Dalasi,” he said.
He said the increase in power purchase cost from Senelec and KARPOWER is driven by fluctuations in foreign currency rates and this amounts to nearly D796 Million.
In a related question, the Member for Jeshwang Constituency Hon. Sheriff Sarr, asked the Energy Minister to inform the Assembly of a payment plan regarding the debt.
In his response, Energy Minister Juwara said: “I am aware that NAWEC has already entered into a payment plan with both Senelec and KARPOWER.”
Hon. Yahya Menteng Sanyang also asked the Minister if there is a Clause in the agreements between NAWEC, Senelec, and KARPOWER that warrants any renegotiation of this contract when the Dollar appreciates against the Dalasi.
In his response, Energy Minister Juwara said there is no such Clause in their contracts.
Member for Foni Kansala Hon. Alimameh Gibba told the Minister to state if his Ministry has any plans of looking inward to see how they can take ownership of the electricity supply in the country.
In his response, Energy Minister Juwara said there are no immediate plans to terminate these contracts, but there are plans to increase the country’s local generating capacity both in terms of thermal energy and renewables.
Mr. Juwara further said that the focus is more on renewable energy and said this is why they recently launched a tender for 50 Megawatts in Jarra Soma.
