Published On: Sat, Dec 21st, 2013

NAB allows Turkish rental power ship to sail to Dubai

Corporate News (Pakistani news) NAB

Corporate News (Pakistani news)

After being awarded contacts in 2009, 12 rental power companies had to face revocation of their contracts in March 2012 due to a decision by the Supreme court of Pakistan according to which the companies were unable to produce power at  the agreed quantity and there was lack of transparency.

Karkey, a Turkish energy firm which was one of the affected companies of the decision given by the Supreme Court decided to bring a claim of $345 million against Pakistan in the World Bank-affiliated International Centre for Settlement of Investment Disputes (ICSID), for losses incurred by its vessels due to damage and depreciation.

According to the water and power ministry, the ICSID in a decision regarding this case on 8th October permitted the Vessel of the power company to leave for Dubai for dry-docking and flag registry. The ministry pleaded to the ICSID that the Turkish company could not enter the oceanic boundary of Pakistan without paying $128 million according to a decision by the Supreme court. The ministry also gave an option to Karkey in front of the ICSID to submit a refundable guarantee bond worth $128 million to the Pakistani Government on its departure to Dubai.

The reply of the ICSID to this application by the ministry was that the Turkish company already had 3 of its vessels in Pakistani territory hence there was no need to submit a guarantee bond. After this reply the power ministry finally requested the NAB to permit the Turkish vessel to leave for Dubai.

Karkey’s vessel will remain in Dubai for about 20 days after which it will be bound to return to Pakistan. Interestingly, Karkey Karadeniz ElektrikUretim A.S. (Karkey) has not given a guarantee but the government of Pakistan has given her guarantee to the NAB to allow the vessel to sail to Dubai.

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