Turkish RPP firm to sue Pakistan at US arbitration court

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This file photo shows the machinery imported for the ship-mounted Karkey Karadeniz Elek trik Uretin AS Turkey, Korangi (232 MW) project. —File Photo

ISTANBUL: Turkish power firm Karadeniz Holding said it was suing Pakistan at a US arbitration court for at least $600 million compensation after two of its electricity-generating ships were seized in March. 

Karadeniz Holding chief commercial officer Nuray Atacik told Reuters the ships were being kept by Pakistan without a reason.

“Adding it all up together, our total loss so far has reached $600 million. As long as the Pakistani side keeps the ships this amount is increasing,” Atacik claimed.

“If Karkey had such a strong case against the Pakistan government, why would they have made an offer for voluntary return to NAB of the amount of $17.2 million,” said a spokesman for Pakistan's National Accountability Bureau (NAB), referring to a previous offer by the company to settle the dispute.

The NAB had informed the Pakistani Supreme Court last month that $120m was outstanding against Karkey Karadeniz Elektrik Uretin AS Turkey plant instead.

Atacik said on Friday that Karadeniz Holding sent two ships with 330 megawatts generating capacity to Pakistan in 2009 and both sides signed a 564 million five-year contract.

After prices rose, Pakistan did not supply fuel to the ships nor did it make rental payments to Karadeniz Holding, she claimed.

The company ended the contract but Pakistan kept the ships which operate 300 metres offshore.

Karadeniz Holding’s ships were going to supply the annual electricity need of 5 million people, according to its web site.

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