According to Hon. Nani Juwara, Minister of Petroleum and Energy, the National Water and Electricity Company (NAWEC) owes Senelec, the country’s electricity supplier, $16.1 million. In addition, NAWEC owes Karpower $8.4 million.
During a National Assembly parliamentary session on Wednesday, Hon. Juwara made the discovery while answering questions from Hon. Modou Lamin Bah, the Banjul North National Assembly Member. Hon. Bah asked why these debts are growing, particularly because Gambians are using prepaid cash power to pay for their electricity.
As of September 30, 2024, NAWEC’s outstanding invoices to Senelec totalled 9.8 billion CFA francs, or $16.1 million, the minister replied, providing updates. June, July, August, and September invoices are covered by these debts. In a similar vein, NAWEC owes Karpowership $8.4 million for invoices dated June through August 2024.
“The outstanding invoices for Karpower and Senelec as of September 30, 2024, are as follows: $8.4 million for Karpower’s June, July, and August 2024 invoices, and 9.8 billion CFA, or $16.1 million, for Senelec’s June, July, August, and September 2024 invoices. The primary cause of the payment delay is NAWEC’s cash flow issues brought on by the non-cost reflective tariff, which are made worse by the growing cost of foreign exchange because Karpower and Senelec both need payments in currencies that are still rising in value relative to the Gambian Dalasi,” he revealed.
He clarified that variations in foreign exchange rates caused Senelec and Karpower’s power purchasing prices to climb by D796 million between January and August 2024.
The National Assembly Member for the Jeshwang Constituency, Hon. Sheriff Sarr, questioned the minister in a follow-up if a payment plan was in place to pay off the debts.
The minister responded by confirming that NAWEC has already signed a payment agreement with Karpower and Senelec.
The Latrikunda Sabiji Member, Hon. Yayah Sanyang, asked if the contracts contained any provisions that would permit a revision of terms in the event that the value of the dollar rose relative to the dalasi. The minister stressed that the contracts do not contain such a condition.
The Member for Foni Kansala, Hon. Almameh Gibba, enquired as to whether measures were in place to end the contracts and concentrate on boosting domestic electricity production.
“Honourable member, I apologise, but there are no immediate plans to terminate these contracts. However, we recently launched a tender for a 50 megawatt solar plant that will be located in Jarra Soma. This is because we have plans to increase local limiting capacity in terms of both thermal energy and renewable energy.”
Hon. Musa Badjie, the Member for Tallinding, asked when the plans would be put into action and how much reliance on outside funding would be reduced.
The minister responded by stating that bids for the 50 megawatt solar facility were received on Thursday and that the review process is still under progress.
The minister told legislators during his September speech in Parliament that the Gambian government owes Senegal’s electrical provider, SENELEC, more over 10 billion CFA for unpaid bills spanning May, June, and July 2024.
Later, Buba Badjie, the National Water and Electricity Company’s (NAWEC) Communications Officer, corrected earlier reports of a three-month unpaid amount by confirming to this platform that NAWEC currently owes SENELEC for 45 days.
