LIGHTS OUT IN LIBREVILLE

UNCLAS LIBREVILLE 000088

SIPDIS

PARIS FOR AFRICA WATCHER

SIPDIS

E.O. 12958: N/A
TAGS: ENRG EPET ECON EIND EINV GB
SUBJECT: LIGHTS OUT IN LIBREVILLE


1. Summary: Gabon's capital continues to suffer from rolling
blackouts, which began two weeks ago. The electric company, Societe
d'Energie et d'Eau du Gabon (SEEG),states that due to low rainfall
and high temperatures, its hydroelectric dams are unable to meet
demand. Gabonese are not used to power cuts and they are angry and
outraged by SEEG's failure to assure service. The company is flying
in generators, which it hopes will stop the power outages and
assuage the people's anger. End Summary.


2. After two weeks of rolling blackouts, residents of Libreville
continue to suffer from power outages. Every neighborhood in the
city experiences a blackout for at least a few hours each day.
Unused to blackouts, residents complain of the heat and worry about
side effects such as loss of productivity and an increase in crime.



3. All types and sizes of businesses are affected by the blackouts.
Some grocers are closing or reducing their inventory because they
cannot maintain the quality of food. Some gas stations aren't able
to operate as their pumps are electrically operated. Even the
generator at the city's largest hotel, the Intercontinental, was
unable to cope when the electricity was cut off for over 17 hours.


4. As time has passed, and the blackouts continue, anger with SEEG
has grown. In 1997 the government awarded SEEG, a subsidiary of the
French Veolia Water Commpany, a 20-year concession for the
production and distribution of water and electricity. The city's
power is supplied from hydroelectric dams in Kinguele and Tchimbele
(approximately 125 kilometers outside Libreville). Today, the
company is accused of not meeting demand, as required by the 1997
contract. Commentators also cite a study commissioned by SEEG in
2001 that predicted the current difficulties if the company did not
make necessary investments.


5. In defending itself, SEEG states that it has met contractual
requirements; it shifts the blame to an explosion in electricity
demand and low rainfall. According to SEEG, consumption has
increased from 145 megawatts in 2006 to 161 megawatts today. The
company also says water reserves at the hydroelectric dams fell
significantly over the last year. In response to popular
discontent, the company published a schedule of power outages.
However, the schedule was not followed, further infuriating
residents.


6. To resolve the issue, SEEG is flying in 15 generators to
supplement power generation. The company states that they are
installing the equipment and hope to have the situation controlled
by the end of the month. As people continue to suffer through
blackouts and anger continues to rise, the company would be best
advised to keep its word.

WALKLEY