The contractual agreement binding Gabon to Karpowership, a subsidiary of the Turkish Karadeniz Holding conglomerate specializing in floating power plants, has become embroiled in a significant budgetary and industrial dispute. Industry reports indicate that Libreville currently remits 1.8 billion CFA francs monthly for a theoretical capacity of 150 megawatts. However, the actual power delivered to the national grid is reportedly capped between 80 and 90 megawatts. This considerable discrepancy raises critical questions, particularly as Gabon’s transitional authorities strive to streamline public expenditures, which have long faced criticism for their lack of transparency.
An emergency agreement that became permanent
Initially, the engagement with the Turkish operator was conceived as a short-term remedy. Gabon’s executive government, grappling with a persistent power generation deficit exacerbated by aging thermal infrastructure and the unpredictable nature of hydroelectricity during the dry season, opted for the rapid deployment of powerships. These vessel-mounted power stations, moored off Owendo, are capable of injecting tens of megawatts into the national grid within weeks. This proven method, successfully implemented in nations like Ghana, Sierra Leone, and Sénégal, offers an immediate solution to energy crises, albeit typically at a higher per-kilowatt-hour cost compared to conventional land-based power plants.
What began as a temporary stopgap, however, has evolved into a long-term fixture. The anticipated expansion of local power generation projects, especially those centered around new dams and gas-fired plants, has not yet reached a scale sufficient to render the Turkish contract dispensable. Consequently, the Société d’énergie et d’eau du Gabon (SEEG) remains reliant on this external provider to meet its electricity demands, particularly during peak consumption hours. Over a twelve-month period, the cumulative cost surpasses 21 billion CFA francs – a substantial sum for a nation whose fiscal trajectory remains under close scrutiny.
Increasingly challenged economic viability
The primary point of contention revolves around the disparity between the invoiced capacity and the actual power supplied. Paying a fixed rate based on 150 megawatts while receiving only a fraction of that amount inherently inflates the true cost of each megawatt delivered. Within governmental and technical circles, numerous voices argue that the current contractual framework excessively shields the Turkish operator from fluctuations in demand and potential technical issues. Gabon’s transitional authorities, who assumed power in August 2023, have since initiated a comprehensive audit of major public contracts inherited from the previous administration.
Karpowership operates extensively across the continent, managing dozens of powerships in approximately fifteen countries, with a particularly strong presence in Sub-Saharan Africa. The group’s strength lies in its ability to quickly deploy units ranging from 30 to 470 megawatts. However, from the perspective of client states, its weakness is the dependency it creates: once a powership is connected, disengaging from the service requires reliable alternative power sources to avoid a return to debilitating power outages.
Considering renegotiation or an orderly exit
Therefore, the challenge extends beyond mere financial considerations; it encompasses critical operational aspects. Terminating the contract without simultaneously activating equivalent alternative capacities would expose SEEG to a severe supply shock. Major anticipated projects, such as the Kinguélé Aval dam developed in partnership with Meridiam, or future gas-fired plants utilizing national production, are not expected to be fully operational for another two to three years. This leaves little immediate room for maneuver.
Several strategic options are currently under consideration. The first involves renegotiating the financial terms, aiming for a stricter indexation of billing to the actual power injected into the grid. A second scenario favors a phased withdrawal, carefully coordinated with the commissioning of new infrastructure. A more drastic third option would entail outright termination, potentially involving recourse to other suppliers, even at the risk of international litigation. The chosen path will significantly impact the credibility of Gabon’s energy policy and, more broadly, the industrial sovereignty doctrine championed by its transitional leadership.
