Sierra Leone’s Minister of Finance, Sheku Ahmed Fantamadi Bangura, has disclosed that the government owes at least $50 million to Karpowership, the Turkish company supplying electricity to the capital, Freetown. Speaking in a local radio interview on Friday, 28th February 2025, Bangura acknowledged the outstanding debt and outlined plans to address the financial obligations.
Karpowership, which operates floating power plants, first entered a contract with Sierra Leone’s national utility company, the Electricity Distribution and Supply Authority (EDSA), the Ministry of Energy (MOE), and the Ministry of Finance (MOF) in June 2018. Initially contracted to supply 30 megawatts (MW), its capacity was increased to 50 MW later that year and further expanded to 65 MW in 2020. The company currently provides approximately 80% of Sierra Leone’s electricity needs.
In September 2023, Karpowership reduced power supply to Freetown due to unpaid bills. Bangura stated that under the current agreement, the company is contracted to provide electricity until June 2025. He emphasized that the government must mobilize $50 million to cover the existing arrears and ongoing payments, while also negotiating a possible contract extension in the absence of an immediate alternative for stable power supply.
The finance minister also acknowledged outstanding debts to other independent power producers, including Transco and CI Energy, which supply electricity to the national grid. He noted that the government has unbundled the power sector, with private companies handling power generation while EDSA manages distribution.
To address the financial strain, Bangura highlighted ongoing government subsidies to Karpowership, which supplement revenue collected by EDSA. However, he stressed the need for consumers to pay for electricity usage to ensure the sustainability of the service.
One of the challenges, he noted, is that the mining sector—one of the country’s largest economic drivers—is not integrated into the national electricity grid, as mining companies generate their own power. This has resulted in a lack of predictable, large-scale revenue sources to support the electricity sector.
Bangura pointed to the introduction of smart metering as a key reform aimed at improving revenue collection. He also underscored the government’s efforts to encourage private sector participation in utility management to enhance efficiency and reduce the financial burden on the state.
As Sierra Leone grapples with ongoing power challenges, the government faces mounting pressure to resolve its debts and secure long-term solutions for stable and sustainable electricity supply.
