By Dr Ebrima Ceesay
Recent speculation that the National Water and Electricity Company (Nawec) owes Senegal’s electricity utility, Senelec, as much as US$88.5 million has raised fresh concerns about the financial health of The Gambia’s power sector and the country’s ability to maintain reliable electricity supplies.
However, information obtained from official sources familiar with ongoing discussions between the utilities suggests the picture is more nuanced than recent claims imply.
According to official sources with direct knowledge of the matter, Nawec’s outstanding obligation to Senelec currently stands at approximately US$37 million, while an additional US$21 million is owed to Guinea’s state electricity provider, Électricité de Guinée (EDG). Together, the liabilities amount to roughly US$58 million.
While substantial, the figures are significantly lower than amounts that have circulated publicly in recent days and, according to industry insiders, are not unprecedented within the context of regional electricity trading arrangements.
The debate over Nawec’s debt comes at a sensitive moment for the utility. Following the expiration of its contract with Turkish power producer Karpowership in 2025, Nawec has been navigating a major transition in how it generates and procures electricity.
The end of the floating power plant agreement was widely viewed as a critical step toward reducing long-term costs and increasing domestic generation, but it has also placed renewed focus on Nawec’s financial position and operational resilience.
Sources familiar with current discussions insist that recent reductions in electricity supplied by both Senelec and EDG were not driven by concerns over unpaid bills.
“The reduction in supply has legitimate operational causes and is not directly linked to the debt levels,” a source familiar with the discussions said.
That distinction is important because public perception has increasingly linked supply constraints to alleged arrears.
Energy analysts note that utilities across West Africa routinely operate with significant outstanding balances due to the complexity of cross-border power transactions, fluctuating fuel costs and the persistent challenge of matching revenue collection with growing electricity demand.
Indeed, some sector observers argue that the more significant development is not the debt itself but Nawec’s reported ability to service it.
Sources say Nawec’s financial flexibility has improved following the full liquidation of an International Islamic Trade Finance Corporation (ITFC) facility that had previously constrained cash flows.
According to individuals familiar with the matter, Nawec is now accelerating payments to both Senelec and EDG while maintaining the ability to meet its operational obligations.
If accurate, that would represent a notable shift from previous years when high fuel costs, foreign exchange pressures and contractual obligations limited the NAWEC’s room for manoeuvre.
Several industry figures have pointed to the Karpowership arrangement as a major contributor to those financial pressures.
Although the agreement helped address chronic electricity shortages, it also consumed a substantial share of Nawec’s revenues, leaving less flexibility for investment in domestic generation and network improvements. Nawec’s current strategy appears aimed at reversing that dynamic.
Official sources said a recent high-level meeting focused on rapidly increasing domestic generation capacity to approximately 70 megawatts through a combination of financing measures, equipment support agreements and operational interventions.
The objective is to reduce dependence on imported electricity while improving reliability.
Over the medium term, officials are also looking to larger renewable energy investments, including the planned 150-megawatt Soma solar project, which has been identified as a cornerstone of The Gambia’s energy transition strategy.
If successfully implemented, projects of that scale could fundamentally alter the Gambia’s energy mix by reducing fuel import costs, lowering exposure to external supply disruptions and improving long-term financial sustainability.
However, significant challenges remain.
Nawec continues to face growing demand, ageing infrastructure and the need for substantial investment across generation, transmission and distribution networks.
At the same time, the utility company must maintain confidence among regional suppliers whose electricity remains critical to meeting national demand.
Sources also indicated that discussions are underway regarding potential additional support from the World Bank as part of broader efforts to stabilise the sector and support ongoing reforms.
Such support, if approved, could provide an important cushion as Nawec pursues its transition away from emergency power arrangements toward a more diversified and self-reliant energy system.
Ultimately, the controversy surrounding the debt figures underscores a broader reality: The Gambia’s electricity sector is in the midst of a complex transformation.
The key question is no longer simply how much Nawec owes its regional partners.
Rather, it is whether Nawec can convert recent reforms, improved cash-flow management and planned investments into a sustainable model capable of delivering reliable and affordable electricity to Gambian consumers.
For now, sources close to the discussions maintain that Nawec remains capable of meeting its obligations and that its relationships with both Senelec and EDG remain functional despite the financial pressures.
