By: Binta Jaiteh
The National Assembly Member for Banjul North, Modou Lamin Bah has questioned the Minister of Petroleum and Energy Nani Jawara over debts owed to Senelec, asserting that people are paying for their pre-paid cash power for electricity.
Hon. Bah’s concern on the matter was raised during questions for oral answer with ministers on Wednesday. The Banjul North lawmaker further demanded to know the amount NAWEC owes both Senelec and Karpower.
In response, Minister Jawara told lawmakers that, Gambia owes Karpower $8.4 million for invoices covering June, July, August, and September while Senelec is owed $9.8 billion CFA which is equivalent to $16. 1 million, for the same months of June, July, August, and September.
“The delay in payment is mainly attributed to cash flow challenges faced by NAWEC due to the non-cost reflective tariff which is compounded by the rising cost of foreign currency as both Karpower and Senelec require payment in foreign currencies that continue to appreciate against the Gambian dalasi from January to August 2024. The increase in power purchase cost from Senelec and Karpower are driven by fluctuations in foreign currency rate that amounted to almost D7,96 million,” he explained.
The lawmaker for the Jeshwang constituency Sheriff Sarr further asked the minister whether there are any plans to pay the debt.
The Minister of Petroleum confirmed that NAWEC has entered into a payment plan with both companies to settle the debt.
Meanwhile, Lawmaker for Foni Kansala Almamay Gibba said looking at the total amount that is already owed, he asked, whether the Ministry has plans to terminate contracts and look inwards to see how to take ownership of its electricity.
Minister Juwara pointed out that there are no immediate plans to terminate these contracts but that NAWEC has plans to increase the local generating capacity in terms of thermal energy and renewables.
According to him, the focus is more on renewable which is why they recently launched a 50-megawatt solar plant that will be located in Jarra Soma. “The evaluations are going on regarding the 50 megawatts and the construction period for such plans is about 12- 18 months depending on the fastness of the contract,” he concluded.