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This is a lion contract in the history of electricity supply in Mali.
The electricity supply contract between EDM and Albatros Energy, signed quickly under the IBK regime, continues to cause concern. Meanwhile, the meagre state coffers continue to bleed. Fortunately, “the process of terminating the contract is ongoing,” we can see from the reply from EDM officials to the Office of the Auditor General.
In fact, the contract, also known as “take or pay” (in simple French, “pay or not”), consists in the production of a certain amount of electricity, which EDM undertakes to purchase exclusively. The only problem is: EDM does not have the ability to transport the electricity generated by the power plant, since it does not have lines capable of transporting the load. However, the Albatros company itself reported this situation in a letter dated April 28, 2015 to the then National Director of Energy. In the letter, the boss of Albatros Energy stated that “after a meeting this morning with the EDM, represented by the Planning Director, Mr. Diallo, and our partners from Infra Invest, we were informed that the current capacity of the existing 225 kv transmission line does not allow the evacuation of our production and that the EDM is concerned about the signing of amendment number 1 of the energy supply contract. » The latter responded that the state has signed agreements with international financial institutions to repair the transmission line between Bamako and the production site, and even to build new ones. “I inform you that the Ministry of Energy is considering strengthening the Manatali-North-Bamako line by building a new 225 KV double circuit line as part of the OMVS Manatali II project currently being prepared. The line is scheduled to start work in 2017 after the completion of the construction of the Guyna hydroelectric power plant. », in the letter in support of the State Director of Energy. All this was never done, according to the report of the Auditor General, during which the company has collected and continues to collect public funds, but without actually delivering products.
The immortality of this contract is that the Malian state not only guarantees the financing of infrastructure construction, but also bears the full brunt of the resulting risks. Even more serious is that a technical note prepared by the National Energy Agency for Mali’s Albatross Energy Company states: “The exploitable capacity of the OMVS 225>KV line between Cais and Bamako is 150 MW, which would require doubling the line on the Malian side. However, this scenario is currently only theoretical and is difficult to imagine, or even impossible, in reality.” As we can see, there are some suspicious aspects to the signing of this contract.
Subsequent Cases
Youssef Diallo
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