Gabon is reconsidering its power purchase agreement with Karpowership, a subsidiary of Turkish conglomerate Karadeniz Holding, as budgetary pressures mount. Officials in Libreville pay 1.8 billion Central African francs monthly for a theoretical capacity of 150 megawatts, yet actual energy delivered hovers between 80 and 90 megawatts. The discrepancy has intensified scrutiny over public spending efficiency during the transitional governance period.
Emergency solution becomes structural dependency
Initially designed as a temporary fix, the powership contract was adopted to address chronic electricity shortages exacerbated by aging thermal plants and seasonal hydroelectric inconsistencies. These floating power stations, docked near Owendo, promised rapid deployment—proven in neighboring countries like Ghana, Sierra Leone, and Senegal—but at a premium compared to conventional land-based alternatives.
What began as a stopgap measure has evolved into structural reliance. Despite progress in local generation projects, including the Kinguélé Aval dam and national gas initiatives, the SEEG (Société d’énergie et d’eau du Gabon) continues to lean heavily on external supply during peak demand. Over the past year, payments to Karpowership have exceeded 21 billion Central African francs, a significant burden for a nation under fiscal monitoring.
Economic rationale under fire
The core issue lies in the mismatch between contracted capacity and actual output. Paying for 150 MW while receiving barely half inflates the effective cost per megawatt. Critics within government and technical circles argue the contract disproportionately safeguards the Turkish operator from demand fluctuations and technical failures. Since taking office in August 2023, the transitional administration has prioritized audits of major public contracts inherited from the previous regime.
Karpowership operates across Sub-Saharan Africa, managing dozens of powerships with capacities ranging from 30 to 470 MW. While its rapid deployment capability is unmatched, clients often face lock-in effects—terminating contracts risks plunging national grids back into blackout cycles without reliable alternatives in place.
Path forward: renegotiation or phased exit
The stakes extend beyond finance to operational stability. A sudden termination without equivalent backup generation could trigger severe supply shocks. Key projects like the Kinguélé Aval dam (partnered with Meridiam) or planned gas plants are years away from full capacity, leaving a narrow window for maneuver.
Three potential strategies are under consideration. The first proposes renegotiating terms to align payments strictly with delivered power. The second favors a gradual phase-out synchronized with new infrastructure rollouts. The third, more drastic, contemplates immediate termination with potential recourse to alternative suppliers, despite the risk of international disputes. The decision will shape Gabon’s energy policy trajectory and its broader industrial sovereignty agenda.
Final determinations are expected in the coming weeks as the country finalizes its updated energy roadmap.
