Electricity Woes Deepen as Karpowership Halts Supply in Guinea-Bissau’s Capital Over Unpaid Debt
The picturesque capital of Guinea-Bissau, Bissau, is grappling with an unanticipated crisis, as Turkish energy conglomerate Karpowership abruptly cut off its electricity supply to this West African nation. The reason behind this drastic action is an unpaid debt amounting to a staggering $17 million, as confirmed by Bissau’s economy minister, Suleiman Seidi.
This abrupt and unexpected power outage has sent shockwaves throughout the city, disrupting the daily lives of residents and the functioning of local businesses. Karpowership, renowned worldwide as a leading operator of floating power plants and a subsidiary of the Karadeniz Energy Group, has held the sole responsibility for providing electricity to Guinea-Bissau since the signing of a power supply agreement in 2019.
Economy Minister Suleiman Seidi, while acknowledging the severity of the situation, sought to reassure the public that immediate steps were being taken to address the ongoing financial dispute. He disclosed that negotiations were in progress to clear the outstanding debt of $15 million owed by the Electricity and Water Company of Guinea-Bissau, vowing that a resolution would be reached within a tight 15-day window.
In a bid to alleviate concerns and uncertainty among the population, Minister Seidi also announced that Karpowership had expressed a willingness to engage in discussions with the government. This was intended to ensure that the debt issue would not develop into a prolonged impasse, with a mutual commitment to finding a resolution being the core objective. Minister Seidi shared these updates during a press conference, emphasizing the government’s dedication to finding a swift solution.
Karpowership, too, issued an official statement in response to the crisis that had unfolded in Guinea-Bissau. The statement revealed, “Unfortunately, following an extended period of nonpayment, our floating power plant can no longer continue its operations.” In this statement, the company highlighted their unwavering commitment to working diligently with government officials to find a swift resolution to the issue and to restore electricity generation to Guinea-Bissau as rapidly as possible.
This episode of a prominent power provider halting its services over unpaid debts echoes a similar incident in September, when Karpowership took the same drastic action by disconnecting the electricity supply to Sierra Leone’s capital, Freetown. The reason, again, was an unpaid debt, which in that case amounted to approximately $40 million. Such actions by Karpowership shed light on the financial pressures experienced by governments and utility providers across the region, as they grapple with economic challenges and sustainability.
The abrupt power outage in Bissau and its surrounding areas has created a challenging predicament for residents. The absence of electricity affects lighting, electronic devices, and refrigeration, causing considerable inconvenience. Residents, like Nene Bangura, who lives in the Bairro Ajuda area, are grappling with the repercussions of the blackout. Nene expressed concerns about food preservation, remarking, “What are we going to do with our refrigerators full of food that we will have to throw in the bin? Who’s going to pay us back?”
“What are we going to do with our refrigerators full of food that we will have to throw in the bin. Who’s going to pay us back?”
The government of Guinea-Bissau, a nation with a population of approximately two million people, had previously entered into a renewable five-year electricity supply contract with Karpowership in October 2018. However, this blackout has left many in Bissau eagerly anticipating the restoration of power and resolving the financial dispute that is impacting their lives.
As the government works diligently to address this issue, the population is left hoping for a swift resolution that will bring stability and the return of a vital utility – electricity. Amid these challenges, Bissau and its people are a testament to the resilience and adaptability that are fundamental to overcoming such crises.
