Gabon reviews controversial karpowership contract for energy efficiency
Gabon’s agreement with Karpowership, a subsidiary of the Turkish Karadeniz Holding specializing in floating power plants, has become a focal point of budgetary and industrial debate. Financial reports indicate that Libreville disburses 1.8 billion CFA francs monthly for a theoretical capacity of 150 megawatts. However, the actual power supplied to the national grid currently hovers between 80 and 90 megawatts. This significant discrepancy raises questions, particularly as the transitional authorities strive to streamline public expenditures, which have long been criticized for their lack of transparency.
A temporary contract becomes a long-term fixture
The initial signing of the contract with the Turkish operator was intended as a short-term remedy. Faced with a persistent power deficit, exacerbated by aging thermal infrastructure and inconsistent hydroelectric output during the dry season, Gabon’s former administration opted for the rapid deployment of powerships. These vessel-mounted power stations, anchored off Owendo, are capable of injecting tens of megawatts into the national grid within weeks. This method, successfully implemented in countries like Ghana, Sierra Leone, and Senegal, provides an immediate solution to energy crises, though typically at a higher per-kilowatt-hour cost compared to conventional land-based power plants.
What began as a temporary stopgap has evolved into a long-standing arrangement. Despite the progress of local power generation initiatives, particularly those involving dams and gas-fired plants, these projects have not yet rendered the Turkish contract redundant. Consequently, the Société d’énergie et d’eau du Gabon (SEEG) remains reliant on an external provider to meet its electricity demands, especially during peak hours. Over a twelve-month period, the cumulative cost surpasses 21 billion CFA francs – a substantial sum for a nation whose budgetary trajectory remains under close observation.
Economic equation faces growing scrutiny
The primary point of contention lies in the disparity between the billed capacity and the actual power delivered. Paying a fixed rate indexed to 150 megawatts while receiving only a fraction of that output inevitably inflates the true cost of each megawatt supplied. Numerous voices within both governmental administration and technical circles contend that the contractual terms overly shield the Turkish operator from demand fluctuations and technical issues. The transitional authorities, who assumed power in August 2023, have since initiated a comprehensive audit of major public contracts inherited from the previous regime.
Karpowership is not an isolated entity on the continent. The group operates dozens of powerships across approximately fifteen countries, with a particularly strong presence in Sub-Saharan Africa. Its key strength is the ability to rapidly deploy units ranging from 30 to 470 megawatts. Its vulnerability, from the perspective of client states, stems from the dependence it creates: once a powership is connected, disengaging from the service necessitates reliable alternative capacities to avoid a return to widespread power outages.
Towards renegotiation or an orderly exit
Therefore, the issue extends beyond mere finances; it is fundamentally operational. Terminating the contract without simultaneously activating equivalent capacities would expose SEEG to a severe supply shock. Major anticipated projects, such as the Kinguélé Aval dam developed with Meridiam or future gas-fired power plants utilizing domestic production, are not expected to be fully operational for another two to three years. This leaves limited immediate room for maneuver.
Several options are currently under consideration. The first involves renegotiating the financial terms, establishing a stricter link between billing and the actual power injected into the grid. A second approach favors a gradual disengagement, synchronized with the commissioning of new infrastructure. A more radical third option would entail an outright termination, pursuing alternative suppliers, even if it risks international legal disputes. The chosen path will significantly impact the credibility of Gabon’s energy policy and, more broadly, the doctrine of industrial sovereignty championed by the transitional authorities.
These critical decisions are anticipated in the coming weeks as the nation’s energy roadmap becomes clearer.
