Karpowership has announced that it will disconnect Freetown, Sierra Leone’s capital, at midnight today, June 12, 2025, due to significant unpaid debts by the government. This decision follows numerous requests to the Ministry of Finance to address an increasing backlog of unanswered payments.
On May 28, Karpowership informed the Ministry of Energy that the government had failed to prioritise electricity payments, despite its ability to fund several other initiatives. This has raised concerns about the government’s commitment to providing essential services to its citizens.
Earlier this year, in January 2025, a high-level delegation from the Sierra Leone government met with Karpowership representatives in Istanbul to discuss the growing arrears and persistent payment delays. During these discussions, the parties agreed on a payment plan that was supported by key figures such as the Minister of Finance, the Chairman of the Energy Sector, and the Director-General of the Electricity Distribution and Supply Authority (EDSA). However, the plan, which was intended to address existing debt, did not fully cover the amounts owed at the time. This was viewed as a goodwill gesture from Karpowership, demonstrating their commitment to ensuring a continuous power supply despite mounting financial pressures.
Unfortunately, the agreed-upon payment schedule was not followed from the outset. Karpowership issued a payment request on February 25, 2025, for the January instalment, which was due at the end of the previous month. To engage constructively, Karpowership’s commercial team visited Sierra Leone in early 2025 to monitor the situation. They received assurances from high-ranking government officials that the payment plan would be followed going forward. Despite these assurances, additional delays occurred, prompting Karpowership to issue written reminders on April 21 and 24, 2025. In these communications, the company reiterated the operational risks posed by late payments and emphasised the critical need to secure funds for fuel procurement.
Karpowership stated that it understands the Sierra Leonean government’s current financial difficulties. The company has consistently sought ways to mitigate the effects of these challenges and has taken every precaution to prevent service disruptions. However, they stated that the prolonged payment delay has reached a tipping point, making it impossible for them to meet their obligations to suppliers, particularly fuel providers.
As a result, on May 28, 2025, Karpowership issued a suspension notice, requesting that 30% of the outstanding balance be paid immediately. Despite the impending disconnection, Karpowership has pledged to maintain a 6MW supply of electricity for essential services and critical facilities like hospitals.
The company is still optimistic that a resolution will be reached soon, and it is committed to working closely with the Sierra Leone government to find a long-term solution. Karpowership has stated that it is available for dialogue and cooperation at any time, emphasising the importance of collaboration in overcoming the financial impasse.
