Gabon reviews costly power deal with Karpowership amid transition scrutiny

The Gabonese government is reassessing its contract with Karpowership, a subsidiary of Turkey’s Karadeniz Holding specializing in floating power plants. Libreville currently pays 1.8 billion CFA francs monthly for a theoretical capacity of 150 megawatts, yet actual power delivered hovers between 80 and 90 megawatts. This discrepancy has sparked scrutiny as the transitional authorities seek to streamline public spending long criticized for opacity.

From emergency fix to structural dependency

The agreement with the Turkish operator was initially a stopgap measure. Facing chronic power shortages exacerbated by aging thermal plants and unreliable hydroelectric output during dry seasons, Gabon turned to powerships—floating plants anchored off Owendo capable of injecting dozens of megawatts within weeks. While solutions like these have been deployed in Ghana, Sierra Leone, and Senegal, they come at a higher per-kilowatt cost than conventional land-based plants.

What was meant to be temporary has become permanent. Despite progress on local projects, including dams and gas-fired plants, the country still relies heavily on foreign power suppliers during peak demand. Over twelve months, the SEEG (Société d’énergie et d’eau du Gabon) has spent over 21 billion CFA francs on this contract—a significant burden for a nation under fiscal watch.

An economic model under fire

The core issue lies in the gap between billed capacity and delivered power. Paying for 150 megawatts while receiving much less inflates the true cost of electricity. Critics within government and technical circles argue the contract overly shields Karpowership from demand fluctuations and technical risks. Since taking office in August 2023, the transitional administration has audited major public contracts inherited from the previous regime.

Karpowership isn’t alone in Africa. The company operates dozens of powerships across sub-Saharan countries, with units ranging from 30 to 470 megawatts. While deployment is swift, countries risk energy dependence—disconnecting could mean power shortages without reliable alternatives.

Renew, renegotiate, or cut ties?

The challenge isn’t just financial but operational. Ending the contract without replacing its capacity could plunge SEEG into supply shock. Key projects like the Kinguélé Aval dam (partnering with Meridiam) or domestic gas plants won’t be fully operational for two to three years. Immediate options are limited.

Three paths are being weighed. First, renegotiate financial terms to tie payments strictly to actual power delivered. Second, phase out the contract gradually as new infrastructure ramps up. Third, terminate abruptly and seek other suppliers, though this risks international disputes. The decision will shape Gabon’s energy policy credibility and its sovereign industrial strategy.

Final choices are expected in the coming weeks as the country’s energy roadmap takes clearer shape.