Guinea-Bissau’s capital has no power because of unpaid bills to Karpower, the only electricity supplier.
The state utility, EAGB, confirmed this outage started at 12:30 a.m. Karpower, a Turkish company, is asking for about $17 million.
EAGB’s Director stated they were making a big payment, but Karpower didn’t wait for it. He also said the current deal is unfair and costly.
Additionally, he pointed out that late customer payments and undetected fraud worsen their money problems. However, the company is working fast to pay the bill.
Previously, Karpower had threatened to cut off power. To avoid this, the government made a payment plan last September.
Both sides agreed to settle past bills, and Karpower promised to keep the lights on.
The government claims the contract terms have changed, doubling the energy supply. But the actual usage never goes above 22 megawatts, resulting in overcharges.
The new government wants to change the contract but promises to pay past debts. Karpower started supplying electricity to the capital in 2018 using a ship anchored nearby.
Background
Guinea-Bissau has long struggled with power supply issues. The country’s lack of infrastructure is a significant reason for this.
Moreover, political instability has deterred investments in public services like electricity. Karpower started operating in Guinea-Bissau in 2018, aiming to solve these issues.
It provides electricity through a ship-based power plant, which is a unique solution.
However, this arrangement has led to other problems, like today’s blackout due to unpaid bills.
Last September’s agreement was seen as a positive step towards resolving these financial issues.
The ongoing situation underlines the importance of creating a more sustainable and reliable energy system for the country.