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Karpowership Raises Concerns Over Government’s Two-Year Unpaid Capacity Fees, Six-Month Fuel Arrears

by Sierra Leone Monitor
10 June 2025
Reading Time: 2 mins read
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Freetown Faces Power Cuts as Turkish Operator Karpowership Halts Supply over Unpaid Debt
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Freetown, 10 June 2025 — Karpowership, the Turkish power firm operating a floating power plant off Sierra Leone’s coast, has raised concerns over the government’s failure to pay critical electricity bills, warning that this threatens the country’s already fragile power supply.

In a statement issued today, Karpowership revealed that the Government of Sierra Leone has not paid its capacity fees — the base payment guaranteeing electricity availability — for over two years. The company also highlighted an additional six-month backlog on payments for fuel supply, which is essential for daily operations.

“For more than two years, we have not received a single payment for capacity fees from the Government of Sierra Leone,” Karpowership said. “On top of this, we have not been paid for fuel supply for the past six months, which is crucial to keep the lights on.”

Karpowership, which began operations in Sierra Leone in 2018, emphasized its commitment to keeping electricity flowing despite these challenges. However, the company said it can no longer bear the financial burden without immediate intervention.

“We have accommodated Sierra Leone’s needs more than any company could,” the company stressed, “but without payment, we simply cannot continue to supply power at the scale that is needed.”

Earlier this year, Karpowership met with top Sierra Leonean officials — including the Minister of Finance, the Chairman of the Energy Sector, and the Director General of EDSA — to agree on a payment plan. Despite reassurances, payments have not been made.

Karpowership stated: “In January 2025, we met in Istanbul to finalize a payment plan, yet payments have not been honored, and the backlog keeps growing.”

As a last resort, Karpowership has reduced its power generation from 50MW to just 6MW, prioritizing essential services like hospitals and water pumps.

“We do not want to cut electricity,” the company said, “but the Government’s failure to pay capacity fees for over two years, plus fuel bills for six months, has left us with no choice.”

The company urged the Government of Sierra Leone to urgently settle at least 30% of the arrears to avoid a complete shutdown of power supply.

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Meanwhile, the Ministry of Energy yesterday confirmed that Karpowership will stop supplying electricity to Freetown from midnight on June 12 due to unpaid bills. In a statement issued by the Ministry, officials said, “Despite ongoing negotiations to extend the existing contract, we received a disconnection notice from Karpowership on May 28.”

The Turkish power supplier, however, has pledged to maintain a minimal 6MW supply for essential services and hospitals.

The Ministry acknowledged the impending load shedding but assured residents that efforts are being made to manage the crisis. “We are implementing emergency measures under the directive of His Excellency President Julius Maada Bio to mitigate the impact and ensure reliable, affordable power supply,” the Ministry stated.

The Ministry also pointed to ongoing reforms at the Electricity Distribution and Supply Authority (EDSA) aimed at strengthening the utility’s technical and financial sustainability.

 

 

 

Tags: Government of Sierra LeoneKarpowership
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