The National Water and Electricity Company (NAWEC) and Karpowership, a Turkish energy company, have officially ended their seven-year electricity supply agreement, effective today, marking a significant shift in The Gambia’s energy strategy. The decision not to renew the contract reflects NAWEC’s move toward more sustainable and cost-effective energy solutions for the country.
NAWEC announced the termination in a statement: “NAWEC formally announces the conclusion of its contractual agreement with Karpowership, effective today.” Karpowership, which has supplied electricity to The Gambia since 2018 via its floating power plant, the Karadeniz Powership Koray Bey, confirmed the end of the agreement, stating, “Our electricity supply agreement with NAWEC has come to an end, following NAWEC’s decision not to renew the contract.”
The agreement, initially signed in February 2018 for a two-year term, provided 30 megawatts of power, addressing chronic electricity shortages and stabilizing the national grid. The contract was extended in 2020 for two years and again in 2022 for three years, with Karpowership supplying up to 40% of The Gambia’s electricity at its peak. However, according to local reports, the deal faced criticism for its high costs, with payments to Karpowership totaling over $200 million between 2018 and 2025. Critics argued that the funds could have built a permanent 200-megawatt thermal power plant, significantly boosting local capacity.
According to the country’s power grid, the decision to end the contract aligns with The Gambia’s broader energy strategy, which emphasizes energy independence and investment in local infrastructure.
NAWEC has faced financial challenges, including a lack of audited financial statements since 2021 and significant revenue shortfalls, prompting calls for greater transparency and efficiency. The government aims to address these issues by reducing reliance on expensive foreign power suppliers and prioritizing renewable energy and regional partnerships, such as the existing agreement with Senegal’s Senelec for 50 megawatts of imported power.
Energy experts see the move as a step toward long-term sustainability but warn of potential short-term challenges. “Ending the Karpowership contract is a bold move, but NAWEC must ensure alternative power sources are in place to avoid outages,” said Lamin Ceesay, an energy analyst in Banjul. The Gambia’s electricity access rate, currently below 65%, remains a hurdle, with rural areas particularly underserved.
Karpowership, which operates floating power plants in 15 countries, expressed pride in its role in The Gambia, noting its contributions to stabilizing the power supply and supporting community projects, such as donations to orphanages and coastal cleanup efforts. The company highlighted its hybrid technology, which is capable of switching to liquefied natural gas (LNG), as a potential for cleaner energy, though this was not implemented in The Gambia.
