Mali urged to pay 'enormous' outstanding debt for regional hydroelectric dam

Mali owes more than $94 million to the entity managing a key hydroelectric dam that also supplies power to Senegal and Mauritania, raising the spectre of more electricity outages for the country.

SOGEM, the regional body responsible for running the Manantali Dam and power station, said the funding shortfall threatens its continued operation.

It has issued a stark warning to Mali’s state-owned energy company, EDM, to make the outstanding payments.

In a letter dated 25 April, SOGEM’s director general expressed his deep concern, describing it as a “matter of life or death” for the crucial regional energy infrastructure.

Failure to pay means Malians are likely to face more power cuts that are already hurting businesses.

Ongoing economic hardship and constant electricity outages have dented public support for the military government that took power after coups in 2020 and 2021.

With a national electrification rate of just 56 per cent, and only 31 per cent in rural areas, lack of access to a reliable electricity supply remains a significant impediment to development.

The Manantali dam and power plant came online in 2002 and has an installed capacity of 200 megawatts.

More than half of the electricity generated goes to Mali, while Senegal gets 33 per cent and Mauritania receives 15 per cent.

The jointly-owned facilities are co-financed by the Organisation for the Development of the Senegal River.