The Minister of Petroleum and Energy, Hon. Nani Juwara, has disclosed that the National Water and Electricity Company (NAWEC) owes Senegal’s electricity provider, Senelec, $16.1 million. Additionally, NAWEC has an $8.4 million debt to Karpower.
Dec 11, 2024
The revelation was made on Wednesday during a parliamentary session at the National Assembly, where Hon. Juwara responded to questions posed by Hon. Modou Lamin Bah, the National Assembly Member for Banjul North. Hon. Bah inquired about the reasons behind these mounting debts, especially when Gambians are paying for electricity through prepaid cash power.
In his response, the minister provided updates, explaining that as of September 30, 2024, NAWEC’s outstanding invoices to Senelec amounted to 9.8 billion CFA francs, equivalent to $16.1 million. These debts cover invoices for June, July, August, and September. Similarly, NAWEC’s $8.4 million debt to Karpowership relates to invoices from June through August 2024.
“As of September 30, 2024 the outstanding invoices for Karpower and Senelec are detailed as follows: the Karpower is $8.4 million for invoices from June to July, and August 2024; for Senelec is 9.8 billion CFA equivalent to $16.1 million, covering invoices from June, July, August, and September 2024. The delay in payments is mainly attributed to the cash flow challenges faced by NAWEC due to non cost reflective tariff which is compounded by the rising cost of foreign currency as both Karpower and Senelec require payments in foreign currencies that continue to appreciate against the Gambian Dalasi,” he disclosed.
He explained that from January to August 2024, the increase in power purchase costs from Senelec and Karpower, due to fluctuations in foreign currency exchange rates, amounted to D796 million.
In a supplementary question, Hon. Sheriff Sarr, the National Assembly Member for Jeshwang Constituency, asked the minister if there is a payment plan in place to settle the debts.
In response, the minister confirmed that NAWEC has already entered into a payment arrangement with both Senelec and Karpower.
Hon. Yayah Sanyang, the Member for Latrikunda Sabiji, inquired if there are any clauses in the contracts that would allow for renegotiation of terms if the dollar appreciates against the dalasi. The minister clarified that such a clause is not included in the contracts.
Hon. Almameh Gibba, the Member for Foni Kansala, asked whether there are plans to terminate the contracts and focus on increasing local electricity generation.
“Honourable member, sorry there is no immediate plans to terminate these contract, but we have plans to increase local limiting capacity both in terms of thermal energy and also renewable energy the focus is more on renewable energy that why we have recently launched tender for a 50 megawatts solar plant to be located in Jarra Soma,” he responded.
The Member for Tallinding, Hon. Musa Badjie, inquired about the timeline for implementing the plans and reducing dependency on external sources.
In response, the minister clarified that the evaluation process for the 50-megawatt solar plant is ongoing, with bids having been received on Thursday.
During his September appearance in Parliament, the minister informed lawmakers that the Gambian government has an outstanding debt of over 10 billion CFA to SENELEC, Senegal’s electricity provider, for unpaid invoices covering the months of May, June, and July 2024.
However, Buba Badjie, the Communications Officer for the National Water and Electricity Company (NAWEC), later confirmed to this platform that NAWEC currently owes SENELEC for 45 days, correcting earlier reports of a three-month outstanding balance.
