Turkish power firm to seek international arbitration

ISLAMABAD: Turkish power company Karkey has sent a notice to the ministry of water and power and the National Accountability Bureau, informing them that it is going to seek international arbitration against the Supreme Court’s order to recover $120 million (Rs11.4 billion) from it in the Rental Power Projects (RPPs) case.

“We have received a notice from Karkey that it is taking its case to an international court,” a NAB official told Dawn on Sunday.

NAB has not yet served its notice for the payment of $120m on the Turkish company that owns the ship-mounted power plant anchored at Port Qasim in Karachi.NAB had earlier sent to the firm a notice for Rs1.62bn after the two sides reached an agreement on the payable amount.

A source said NAB was to send the fresh notice for $120m to Karkey last week but it was delayed by the ministry of water and power.

“New estimates of $120m were to be finalised by the ministry of water and power and the same were to be sent to NAB so that they could be forwarded to Karkey, but estimates received on Thursday were unsigned,” a source said, adding that NAB authorities had asked the ministry to send the document duly signed by the competent authority.

On Oct 30, NAB and the Turkish firm had reached an agreement under which the company was allowed to leave the country after paying Rs1.62bn.

However, the Supreme Court in its verdict on Monday rejected the agreement and directed NAB to recover $120m (Rs11.4bn) from the Turkish company.

The amount of $120m is being recovered in the Rs22bn RPPs case in which nine companies, including Karkey, were accused of taking advance payment from the government for installation of power plants but they failed to provide electricity to the national grid within the stipulated time causing a huge loss to the exchequer.

Karkey was accused of obtaining from the government $79m (Rs7.55bn) as mobilisation advance for supplying 232 megawatts under the RPPs plan to overcome the power crisis.


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usman hashmi

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