Ezra Power Plant at Kondokoro, where JEDCO distributes power from is limited to Juba only. (Photo: Eye Radio).

President Salva Kiir has established a committee to review the power purchase agreement for the 100-megawatt power generation plant and distribution project in Juba, signed between the government and Ezra Construction and Development Group Company.

In a Republican decree read on the state-owned TV, Kiir tasked the committee to assess the terms and conditions of the agreement between the Ministry of Energy and Dams and Ezra Construction and Development Group.

The review will investigate the causes of high electricity tariffs and related charges.

The presidential decree cited public concerns over the high cost of electricity, adding that it is the government’s responsibility to ensure that South Sudanese citizens have access to reliable and affordable electricity.

The committee will be chaired by the Undersecretary of Energy and Dams and deputized by the Undersecretaries of the Ministries of Mining, Finance, and Planning.

Other members include the Undersecretary of the Ministry of Justice and Constitutional Affairs, the Head of Legal Administration in the Office of the President, the General Manager of the South Sudan Electricity Corporation, the Director General of the Internal Security Bureau of the National Security Service, the Commissioner General of the South Sudan Revenue Authority, and the Chairperson of the Engineering Council of South Sudan.

In addition to reviewing the legal and financial aspects of the agreement, the committee will ensure that the project complies with the relevant national laws and regional best practices.

The committee is also mandated to evaluate the equity structure, shareholding rights, and policies between the government and Ezra Construction and Development Group, particularly in relation to their shares in Juba Electricity Distribution (JETCO).

This includes a review of financial performance and adherence to reporting standards.

The committee has been given 60 working days to submit its findings and recommendations to the president.

Ezra Juba Power – part of the privately-owned Juba-based Ezra Group – is an Independent Power Producer (IPP) that currently operates the only functional power plant in Juba, a 33MW diesel plant launched as an IPP in 2019 following signature of an Implementation Agreement (IA) and a Power Purchase Agreement (PPA) with GoSS in August 2017, according to 2021 World Bank report.

The term of the PPA is 17 years at an average tariff of USD 0.373 / kWh for a total contract value of USD $290 million, after which ownership will be transferred to the government.

The agreement called for a total of 100MW fossil fuel-based plant to be built and operated in four phases of 30MW, 30MW, 20MW, and 20MW.

Meanwhile, the Juba Electricity Distribution Company (JEDCO) was established in 2018 as a joint venture between SSEC, which holds 48% of shares, and Ezra, which holds 52%.15 JEDCO is the only provider of electricity distribution services in the capital city of Juba, serving a total of around 29,800 consumers.

The joint venture was formed in part as a risk mitigation mechanism for Ezra as it allows the company
to directly manage revenue collection from customers in Juba without having to be dependent on
transfers from the South Sudan Electricity Company (SSEC).