In a startling disclosure at the Ministry of Information and Civic Education’s Press Conference on April 30th, 2024, Sierra Leone’s Deputy Minister of Finance 1, Mrs. Kadiatu Allie, unveiled that over the past 6 to 7 months, the Ministry of Finance has disbursed a staggering $36 million to Karpowership.
This revelation comes amidst the government’s concerted efforts to enhance transparency and address the longstanding challenges within the energy sector.
“I can assure you that Government has made payments to Karpower Ship to the tune of $36 million in the past 6 to 7 months but we accrue more debts than what EDSA is able to pay on average,” Deputy Minister Allie disclosed.
She emphasized the necessity to renegotiate with Karpowership to secure more favorable terms for Sierra Leone, given the substantial payments already made to the company.
This revelation follows a recent crisis in Sierra Leone’s power supply, which experienced a brief period of low production. However, the situation has since been rectified through collaborative efforts between the government and energy producers.
“We are pleased to confirm that the power supply at full capacity to Sierra Leone has been restored following a brief period of low production,” stated a representative of Karpowership. “We are grateful for the government’s great efforts and continuous communication with us to resolve the fuel payments and supply chain problems, which have allowed us to restart operations swiftly and continue providing the people of Sierra Leone with reliable and uninterrupted electricity.”
The crisis also prompted the resignation of Energy Minister Kanja Sesay, amidst widespread blackouts in major cities like Freetown, Bo, Kenema, and Kono.
These blackouts were attributed to nonpayment issues with power producers Karpowership and CLSG.
In response to the crisis, the Ministry of Finance took swift action, announcing partial payments to the power producers. An agreement was reached, resulting in the disbursement of US$17 million to Karpowership to address outstanding obligations, according to a press statement form the Ministry.
The Ministry of Energy lis now operating under the direct oversight of President Julius Maada Bio, according to a public notice dated, 26 April 2024.
