Government reaches deal with power supplier

JUBA-South Sudan government has reached a deal with Juba Electricity Distribution Company Ltd (JEDCO) to continue supply power in Juba.

Yesterday, Juba Electricity Distribution Company Ltd (JEDCO) announced that it was going to shut down power supplies starting Tuesday in Juba until further notice.

In a statement extended to Sudans Post, the management of the company that are going to cut off power supply over what they claimed as government failure to provide the foreign currency required to make long-overdue payments for the bulk energy Ezra Construction and Development Group supplies to JEDCO.

“Juba Electricity Distribution Company Ltd (JEDCO) regrets to inform all its customers that it has been forced to halt electricity supplies starting the morning of Tuesday, January 12, 2021, until further notice” it said.

The management however said that it is working with the government to resolve the problem and resume work.

“JEDCO is now urgently working with all stakeholders to resolve the problem and resume regular services to you, our esteemed customers. In the meantime, we humbly apologize for the interruption of services and any inconvenience this might cause, and we appeal for your patience,” it said.

As per the Power Purchase Agreement signed between ECDG and the Ministry of Energy, representing the Government, the MED is contractually obliged to allocate foreign currency to JEDCO for the SSP collected from its customers.

The Ezra Group was then supposed to be paid the foreign currency for supplying bulk energy. This payment was due by the fifth of each month, according to the Central Bank rate. However, since the plant was commissioned, the Ezra Group has been allocated less than 15% of the total amount.

The company has now exhausted every possible means to keep the plant operational, including loans against assets, credit supplies and letters of credit. Over the past several months, Ezra has been communicating with all stakeholders, including the Ministry of Energy and Dams, the Ministry of Finance and Economic Planning, the Ministry of Petroleum, and the Governor of the Bank of South Sudan, requesting that the contractual obligations are fulfilled. To date, no sustainable solution has been found.