This is because the two parties have failed to reach a mutual agreement on financial and technical matters.
"For Nawec they can no longer pay Karpowership because of the heavy charges which vary every time because of the foreign exchange they are paying currently. NAWEC owes them months of arrears,” reliable source told this medium.Your government, we understand, is yet to endorse the request of NAWEC to terminate the contract.
Meanwhile, Mr President, the following suggestions may be of help to remedying the challenges of NAWEC:
It is essential that government adopt paying utilities/NAWEC bills on time. And NAWEC should make efforts to send regular water bills to consumers to ensure they meet their monthly payments. For a long time, many consumers have not been receiving water bills and that needs to be addressed.
Nawec should also issue out a press release to both the print and electronic media calling their customers to pay their arrears. The press release should be read also in all the local languages.
Thirdly the government should approach without delay the Turkish government for help, as well as the Chinese government to give a helping hand to the electricity challenges of the country. Government should also explore the OMVG project for adequate electricity supply, since it is only 40% of the Gambia’s total electricity need that was being provided by the Karpowership as agreed between the company and NAWEC.
Mr President, the Karpowership operates on a take or pay basis which means Nawec is obligated to pay for the fixed capacity of 30 MW whether the electricity is used or not.
At the same time, Nawec has turned to importing electricity from Senegal through OMVG transmission line on a take-and-pay basis, which leaves NAWEC with the option of taking only what they could afford to pay for. It is also vital to state that both companies or electricity suppliers are paid in foreign currencies.
Mr President, it must be stated that a situation of power outage is bad for a country and for a sitting government especially. The economy would be negatively impacted, as all sectors of national development would experience enormous challenges to function well.
Regular supply of electricity in the country is therefore always needed, without which essential services for productivity and economic development will be severely stalled, discouraging potential investors and stifling local businesses, hospitals, offices and private homes.
Mr President, reliable utilities is fundamental to fostering growth and progress. And just recently, you stated that a nationwide electrification project was on course to attain access to electricity. This promise must be fulfilled.
In the meantime, NAWEC needs your presidential support to help them recover government’s outstanding utilities bills in order to improve water and electricity supply countrywide.
Finally, Mr President, in the quest to solving the electricity supply challenge, the government should not attempt to buy used generators. The government can always seek a helping hand, even more support from World Bank and other friendly countries such as China and Turkey.
Since November 1977 to date The Gambia has been struggling to have regular electricity, when by now energy crisis should have been a thing of the past in the country.
Good day!