Africa-Press – Gambia. The National Water and Electricity Company (NAWEC) has officially ended its power supply agreement with Karpower, concluding a seven-year partnership that began in 2018. The announcement was made during a press conference held on Wednesday at NAWEC’s Jabang Substation.
The contract, which expired on May 2, 2025, will not be renewed. NAWEC cited its ongoing energy transition strategy as the reason for this decision. This strategy includes the commissioning of new power stations and regional power interconnections through the Organisation for the Development of the Gambia River Basin (OMVG) network.
The original agreement, signed in February 2018, was a two-year deal for Karpower to supply 30 megawatts of electricity to The Gambia’s national grid. It was renewed in 2020 and again in 2022, extending the partnership through various stages of energy development. The extensions also marked a shift from heavy fuel oil to liquefied natural gas.
According to available data, The Gambia paid approximately D4.4 billion to Karpower between 2018 and 2020. With the additional contract extensions, total payments to the Turkish company have exceeded D10 billion.
NAWEC Managing Director Gallo Saidy praised Karpower for its contribution to the energy sector but made it clear that the company is now in a position to explore alternative, more cost-effective energy sources.
“We have this OMVG line, and this is what you call the West African Power Pool. So this is a market. So most Gambians are thinking that, oh, you are relying on outside. This is the mentality that a lot of people are having, that, oh, you should not rely on outside, you should have your own. But that mentality needs to change. People need to know now that we have a market. That’s why you call it the West African Power Pool. In every country, there will be investors. They will generate power,
He added that NAWEC aims for The Gambia to eventually become a net exporter of electricity, turning the country into a competitive player in the regional power market.
“And if they have access, they can sell. They can sell to their neighbors. So the person who can sell cheaper, we will all go and buy from them. And for the Gambia, if we can also become a net exporter of power, which is what we want, and that is the plan going forward, that we also can sell power, so it becomes more of a market. We cannot be in isolation,” He Said.
He further explained that NAWEC’s decision not to renew the contract was guided by the company’s focus on securing more affordable energy options.
Saidy assured the public that the termination of the Karpower agreement would not lead to power disruptions, as necessary measures are already in place to ensure a stable electricity supply. On the issue of electricity tariffs, he noted that price reductions would only be considered after the company strengthens its systems and operations.
“As you know, NAWAC have challenges, right? So, before you go down and reduce your price, you have to improve your systems first, right? So, what we are going to do is, we are going to make sure we improve our systems first. We make sure that we are able to pay our vendors on time, right? To be a good partner in the business, and to do that you need your liquidity, right? So, long term, the question that you ask, the answer is yes. The whole objective is not to go and make huge amount of profit. It’s to make life manageable for Gambian people. So, if we get to a point where we can reduce the prices, we will do that,” He Said.
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