Chief Minister Sengeh Leads Delegation to Turkey For Contract Renegotiation With Karpowership

Chief Minister David Moinina Sengeh recently spearheaded a delegation to Turkey aimed at renegotiating the terms of the current contract with the Karpowership group’s CEO and CCO, Zharezi.

The primary objective of this visit is to finalize terms regarding the Karpowership agreement, particularly focusing on establishing fixed terms and addressing concerns regarding the “take and pay” model, ensuring payment only for consumable electricity.

In a statement on social media, Sengeh emphasized the commitment to ensuring uninterrupted power supply for the people of Sierra Leone, addressing concerns over the recent power outages in the capital city, Freetown.

The negotiation follows a critical setback in the country’s energy sector, as the Turkish energy firm, Karpowership, halted its power generation activities in Freetown due to unresolved debt amounting to approximately $40 million. The suspension of operations by Karpowership, a key player in Sierra Leone’s energy landscape, led to a significant power outage in Freetown, affecting daily life and essential services.

In a recent press briefing the deputy minister of Finance 1 Kadiatu Allie, Addressing recent payments made to Karpowership, disclosed that the Ministry has consistently made payments, totalling $36 million over the past six to seven months, including recent payments of $17 million and $15 million. These payments, she clarified, encompass outstanding debts and monthly bills, demonstrating the government’s commitment to meeting its electricity obligations.

Karpowership had been contributing around 65 megawatts of power generation capacity to Sierra Leone since 2020, meeting 80% of the country’s total electricity demand. However, prolonged nonpayment by the government prompted the company to suspend most of its operations, exacerbating the energy crisis in the nation.

Following rounds of negotiations, some progress has been made to address the situation. Currently, Karpowership provides 30MW of electricity to Freetown, marking a substantial reduction from the previous 65MW supplied. This reduction is attributed to outstanding invoices dating back to last year, highlighting the urgent need for financial stability and resolution of payment issues to ensure continuous power supply