The Point </publishers.html?passed_name=The%20Point&passed_location=Banjul>
(Banjul)
October 13, 2000
Banjul
The much-talked about electricity deal between NAWEC and the South African Water
and Electricity Company, ESKOM, has flopped, competent and authoritative sources
have disclosed.
This electricity deal came to the limelight late last year during the
Commonwealth Heads of State Summit, where president Jammeh signed for the
government of the Gambia amidst great pomp and pageantry.
So excited over the signing HE was that on arrival at the Banjul international
airport, president Jammeh told GRTS that by April 2000, power failure would be a
thing of the past.
In June this year, ESKOM top brass were in Banjul where together with NAWEC they
signed a 75 million US dollar power deal. The World Bank was expected to support
the project through a loan to the tune of 60 million US dollars to the Gambia
government.
A Memorandum of Understanding between the stakeholders was signed also in the
Gambia, in August 1999, for a partnership.
ESKOM was expected to take off on September 1 this year, when major disagreement
broke out between the parties. The sources said the disagreement borders on the
conditions of the deal.
ESKOM was expected to buy the machines, replace the cables and provide a 17- man
top management team as Managing Director, Director of Finance, head of the
Accounts Section and some engineers. They also proposed that they would only pay
taxes to the government.
These did not get the approval of the Gambia government, and that is where the
whole deal flopped.
The Gambia has since 1977 been seriously hit by electricity power failure, and
an agreement with an Ivorian power company, BASAM, did not take off, as it too
crashed.
Official sources said the World Bank has reported that technical and non-
technical losses suffered by NAWEC have gone worse over the years. These losses
have corresponding effects and fraud, etc have caused NAWEC to lose D40 million
yearly.
The importance of this energy sector, both for political and economic
considerations, sources hinted, compelled president Jammeh to take over the
electricity portfolio from the department of state for Trade, industry and
Employment.
The president's latest pronouncement on the electricity sector was that if by
July next year, 98% of the country was not electrified, there would be no need
for any July 22 military takeover celebration anywhere in the country.


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