In a move aimed at alleviating the country’s persistent energy crisis, Malian authorities have reversed their earlier decision to terminate the concession contract with Albatros Energy Mali SA for a 90 MW thermal power plant located in Kayes.
The contract, initially canceled in October 2024, had been suspended due to a combination of contractual disagreements and significant outstanding payments owed by the national electricity company, EDM-SA. The Albatros Energy thermal power plant, which utilizes six 15 MW diesel engines, was commissioned in 2018. The €85 million project received funding from sources including the African Infrastructure Investment Fund 3 and the OPEC Fund for International Development.
Controversy has surrounded the contract, with reports indicating that between 2020 and 2022, EDM-SA paid Albatros Energy 32.77 billion CFA francs, a substantial portion of which was for unproduced energy under a “take-or-pay” agreement. EDM-SA’s overall debt is estimated to be a staggering 600 billion FCFA, with reported irregularities totaling over 92 billion CFA francs.
However, in a recent development in April 2025, Mali’s Minister of Energy, Boubacar Diane, engaged in negotiations that led to the decision to reinstate the contract. As part of the agreement, Albatros Energy has committed to restarting its operations at the Kayes power plant, reassigning its workforce, and ensuring a stable supply of necessary fuel.
While Albatros Energy has a track record of successful projects elsewhere, such as the 112 MW offshore power plant in Germany, its ventures in Mali have faced challenges. Other significant projects, including the Ségou (33 MW) and Touna (93 MW) solar power plants, have reportedly struggled to become operational.
The Malian government’s decision to reinstate the Albatros Energy contract for the Kayes power plant signifies a move towards a rapid solution to the immediate energy shortages plaguing the country. However, analysts note that this measure, while providing potential short-term relief, does not fundamentally address the deep-rooted structural and financial problems within EDM-SA, suggesting that more comprehensive reforms will be necessary to ensure a sustainable and reliable energy future for Mali.
MD/ac/Sf/fss/abj/APA