By Tabora Bojang
The government is set to pay a whopping US$19.6 million to Turkish electricity company Karpowership as arrears owed to the company following the non-renewal of its supply contract earlier this year.
In 2018, the government signed a two-year deal with Karpower to supply 30 megawatts of electricity to the national grid. The contract was renewed in 2020 and again in 2022, extending the partnership through various stages of energy development.
The Gambia reportedly paid D4.4 billion to Karpower between 2018 and 2020. With the additional contract extensions, total payments to the Turkish company have exceeded D10 billion. Energy Minister Nani Juwara informed lawmakers last year that “as of September 2024, the outstanding balance. The Gambia owes to Karpowership was US$8.4 million based on invoices of June, July and August 2024.”
Appearing before the National Assembly Wednesday, Finance Minister Seedy Keita informed lawmakers that the government is about to receive US$45 million in budget support for the 2025 budget year. He explained: “We had put in the budget US$20 million expected to be budget support from the World Bank but we had a very good engagement with them and they have increased this to US$45 million. And part of this money will be used to pay off the Karpower arrears upon the termination of the agreement.”
In response to a clarification sought by The Standard on how much is owed to Karpower, Minister Keita revealed that the arrears owed to Karpower was US$19.6 million which he said will be taken from the US$45 million World Bank is providing to pay the arrears.
D5.6 billion already received in project grants
The minister further revealed that the government has so far received D5.56 billion in project grants in the first half of 2025 from a projection of D12.6 billion approved for 2025. He stated that international donors like the World Bank, EU and IMF would also be making disbursements,
GGC to borrow $10 million as budget cannot recapitalise corporation
Meanwhile, lawmakers also confronted the finance minister on the D300 million budgeted in the 2025 budget towards the recapitalisation of Gambia Groundnut Corporation (GGC) now known as the National Food Security Processing and Marketing Corporation. In response, Minister Keita said the recapitalisation of GGC directly from the budget will be difficult for now. “However, the government has already made arrangements with the Ecowas Bank for Investment and Development to provide the company [GGC] with a US$10 million loan facility for financing of their working capital requirements.” He stated that this loan will be disbursed if the corporation fulfills requirements attached to it including security and legal opinion.
