Finance Ministry Explains EGTC’s Struggles Over EDSA Payment Delays
The Electricity Generation and Transmission Company (EGTC) is grappling with a critical liquidity crisis due to persistent non-payment by the Electricity Distribution and Supply Authority (EDSA). A recent Ministry of Finance report highlights the dire state of the country’s power sector, with EGTC’s financial stability hanging by a thread.
In 2023, EGTC’s cash receipts totaled NLe239 million, including NLe214 million from operations and just NLe25,000 in government transfers. However, cash outflows reached NLe703.4 million, leaving a staggering net deficit of NLe464 million. This trend persists in 2024, with projected cash receipts of NLe287,544 against outflows of NLe514,081, creating a projected shortfall of NLe226,537.
The ongoing payment delays from EDSA have deepened EGTC’s struggles, jeopardizing its ability to meet operational costs, invest in infrastructure, and maintain reliable electricity supply. While 2025 projections show hope with expected receipts of NLe688,936, this hinges on resolving EDSA’s payment backlog.
The Ministry of Finance stresses the urgency of reforms to address these challenges. Without decisive action, EGTC’s liquidity crisis threatens Sierra Leone’s energy stability and its ability to deliver uninterrupted power to citizens.
