The French and New Caledonian flags flew in the sky of Noumea on July 24, 2023. The state has granted a “repayable advance” of 1.7 billion Pacific francs (14.2 million euros) to the manager of the New Caledonian electrical system, Enercal, which has been in chronic deficit. This announcement was made by the high commission of the Republic in New Caledonia on July 29. The exceptional aid is intended to ensure the company’s functioning and supply of electricity in the coming months, until ongoing reforms ensure its sustainable operation. Enercal, mainly owned by New Caledonia, had a deficit of 18.9 billion francs (150 million euros) as of June 30, according to a recent report by the local government.
In order to ensure the continuation of Enercal’s activities, the collegiate government of New Caledonia proposed last week a gradual increase in the price of selling kilowatts between October 2024 and September 2026. This proposed deliberation, sent to the New Caledonian Congress for examination in the coming weeks, also includes the government taking on Enercal’s deficits during this transitional period and the repayment of the company’s debt between 2026 and 2029. The aid announced by the state on Monday is part of a total package of over 30 billion Pacific francs (250 million euros) in aid, with 12 billion in the form of repayable advances, as New Caledonia was heavily affected by riots that greatly damaged the island’s economic fabric.
Since the start of the revolt on May 13 against an electoral reform project during provincial elections, ten people, including two gendarmes, have died in New Caledonia. The unrest caused by the riots is estimated by the New Caledonian government to be at least 2.2 billion euros. This difficult situation has led to a need for external assistance, and the state’s intervention is crucial to prevent further economic downturn in the region. The government is also working on implementing reforms to ensure the long-term sustainability of Enercal and its operations.
The situation in New Caledonia remains tense, as the riots and protests continue to affect the daily lives of residents. The government’s support, through financial aid and proposed reforms, is essential to stabilize the situation and safeguard the supply of electricity in the region. The plans outlined by the New Caledonian government aim to address the challenges faced by Enercal and ensure its continued operation despite the financial difficulties it currently faces. It is hoped that these measures will help bring stability and economic recovery to New Caledonia in the coming months and years.
Overall, the financial assistance provided by the state is part of a larger effort to support New Caledonia in overcoming the challenges posed by the recent unrest and economic difficulties. The government is committed to helping the region recover and rebuild in the aftermath of the riots, with a focus on ensuring the sustainability of essential services such as electricity supply. By working together with local authorities and stakeholders, it is possible to find solutions that will benefit the people of New Caledonia and help the region move towards a more stable and prosperous future.
