Libya's state-owned power utility has said the expansion of a large power station is nearing completion.

But it may not operate smoothly due to difficulties obtaining the letters of credit (L/Cs) General Electricity Company of Libya (GECOL) needs to pay for imported fuel.

Completion date

GECOL has reported that Khoms power station will be operational in October once a Turkish contractor completes a major expansion programme.

If Khoms does come online, its 550 megawatt (550MW) generating capacity would significantly narrow GECOL's power generation deficit of about 1,600MW.

L/C difficulties

But GECOL has reported that it has been unable to obtain foreign currency L/Cs for much needed spare parts and there are fears that fuel may in short supply for the same reason.

The state utility is facing other difficulties too. It is five-months late paying salaries to its employees, although GECOL has said these will be paid in the next few weeks.

GECOL says very few Libyans are bothering to pay their electricity bills, which also compounds the utility's financial difficulties.

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