Gabon reconsiders controversial power deal with Turkish firm

Gabon is currently reviewing a contentious energy agreement with Karpowership, a subsidiary of Turkey’s Karadeniz Holding that operates floating power plants. Officials in Libreville are scrutinizing the deal after reports indicated that the government pays 1.8 billion CFA francs monthly for a theoretical capacity of 150 megawatts, while actual power delivered fluctuates between 80 and 90 megawatts. This discrepancy has intensified scrutiny over public spending, particularly as the transitional authorities seek to eliminate long-standing budgetary opacity.

From temporary fix to enduring burden

The agreement with the Turkish operator was initially framed as a stopgap measure. Facing chronic electricity shortages exacerbated by aging thermal plants and unreliable hydroelectric output during dry seasons, Gabon turned to powerships—floating power stations anchored off Owendo. These vessels, which can be deployed within weeks, have been used successfully in countries such as Ghana, Sierra Leone, and Senegal. However, the solution comes at a premium, with the cost per kilowatt-hour typically exceeding that of conventional land-based plants.

What was meant to be a short-term fix has become a long-term fixture. Despite progress in local energy projects, including hydroelectric dams and gas-fired plants, the SEEG (Société d’énergie et d’eau du Gabon) remains reliant on external power suppliers, especially during peak demand. Over the past year, the cumulative expenditure on this arrangement has exceeded 21 billion CFA francs—a significant burden for a nation under fiscal scrutiny.

Mounting criticism over cost-efficiency

The crux of the controversy lies in the gap between billed capacity and actual output. Paying for 150 megawatts while receiving only a fraction inflates the real cost of delivered power. Within government and technical circles, concerns are growing that the contract’s terms overly favor the Turkish operator, shielding it from fluctuations in demand and operational risks. Since assuming office in August 2023, the transitional leadership has launched a comprehensive audit of major public contracts inherited from the previous administration.

Karpowership is not alone in Africa. The company operates dozens of floating power units across more than a dozen sub-Saharan countries. Its strength lies in rapid deployment, offering capacities ranging from 30 to 470 megawatts. Yet, from the perspective of host nations, this model creates dependency: once a powership is integrated into the grid, terminating the contract risks plunging the country back into power shortages unless alternative sources are already operational.

Negotiation or phased exit under consideration

The dilemma is not merely financial but also operational. Terminating the agreement without ensuring replacement capacity could trigger severe supply disruptions. Key projects, such as the Kinguélé Aval dam developed with Meridiam or upcoming gas-fired plants, are not expected to reach full capacity for another two to three years. This leaves policymakers with limited room for maneuver in the near term.

Three potential courses of action are being weighed. The first involves renegotiating financial terms to align payments strictly with actual power delivered. A second option favors a gradual phase-out, synchronized with the ramp-up of new infrastructure. A third, more drastic scenario would entail an abrupt termination, potentially leading to international disputes if alternative suppliers are secured. The decision will shape Gabon’s energy policy credibility and reflect its commitment to industrial sovereignty.