The minister of Finance and Economic Affairs and the Managing Director of the National Water and Electric Company today signed an MOU which aims to put the institution on a path to recovery and set the foundation for sustainability.
NAWEC’s Total Debt Outstanding as of June 30, 2017 amounts to GMD 9,335,429,170.
A number of NAWEC’s debt facilities are not yet fully utilized, consequently the amount of the Company’s debt outstanding is expected to increase to approximately GMD 11,114,802,059 by 2021 when all debt resources are applied to fund ongoing investments.
NAWEC’s financial indebtedness was incurred without consideration to the Company´s repayment capacity and although the vast majority of the debt was contracted under concessional terms, the Company does not have the financial resources to pay the debt service associated with it.
The Government of The Gambia and NAWEC, are committed to undertaking the actions required to turn NAWEC into a financially viable company and to set it into the path of long term sustainability. To achieve this, NAWEC requires a Comprehensive Financial Recovery Strategy inclusive of a Debt Restructuring Program and a series of technical, commercial and administrative corporate actions.
In consideration of the above The Ministry of Finance and Economic Affairs and NAWEC have today signed an MoU which aims to put the institution on a path to recovery and set the foundation for sustainability.