Turkish RPP firm to sue Pakistan at US arbitration court

[VelocuR]

Turkish RPP firm to sue Pakistan at US arbitration court
Reuters | 14 hours ago

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

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.


Let's cancel T-129 helicopter and other projects.

 

[Yeti]

Why did Pakistan keep the ships if the contract was null and void?

 

[T-Bortecine]

Raptor your a total joke.

 

[sohaib91]

Mr Raja Rental's achievement . . . !!!

 

[farhan_9909]

height of corruption.

this is one of the reason.turkish firms are nt anymore investing in pakistan.

 

[AZADPAKISTAN2009]

Well article says the ships owe 120 Million dollars , this is just plain business , when fines are paid the ships will be relesed if deadlines pass these ships could be confiscated

Normal business transaction

This is a private business matter , I do hope that the issue is resolved Turkey is a friendly nation however business matter is buiness matter .. the ship company should pay fines due


It appears this is what happened


`Ship company (Turkey) they sent in ship for 5 years to product electricity , Pakistan Gov paid them money
however , when the ships came to Pakistan the Prices of Oil increased . So the Profit margin of the company
was low , they decided to not Buy oil

Pakistan , asked well we paid you , you were suppose to make electricoty the Turkey company said
sorry prices for oil have increased and we cannot produce electricity for `FREE` so they broke the contract

a) They did not produce electricity - no oil
b) Pakistan government paid them money - not returned

Loss of electrcity meant that there were losses of Business in Economy , and Turkish company did not paid the
fines or made electricity.

Due to failiure to pay ... they confiscated the Ships untill `PENELTIES` were paid for losses

In desperation the Turkish company files court orders to get ships back with

I mean their actions may have cost losses of 1-1.5 Billion dollars but they want to give back mere 10 million dollars and do not take responsibilties

Which is why the ships were confiscated for `BREACH of contract


The problem really is that the company , went into Business with Risk .. they said for 5 years oil prices will not increae .... so they went in 600 million dollar contract with Pakistan for which they were probbly paid ..

Because they failed to deliver ... loses were 1.5 billion to economy

So ships were confiscated correctly

If you sign a contract to make electricity you have to provide electricity

 

[T-Bortecine]

Well article says the ships owe 120 Million dollars , this is just plain business , when fines are paid the ships will be relesed if deadlines pass these ships could be confiscated

Normal business transaction

This is a private business matter , I do hope that the issue is resolved Turkey is a friendly nation however business matter is buiness matter .. the ship company should pay fines due


It appears this is what happened


`Ship company (Turkey) they sent in ship for 5 years to product electricity , Pakistan Gov paid them money
however , when the ships came to Pakistan the Prices of Oil increased . So the Profit margin of the company
was low , they decided to not Buy oil

Pakistan , asked well we paid you , you were suppose to make electricoty the Turkey company said
sorry prices for oil have increased and we cannot produce electricity for `FREE` so they broke the contract

a) They did not produce electricity - no oil
b) Pakistan government paid them money - not returned

Loss of electrcity meant that there were losses of Business in Economy , and Turkish company did not paid the
fines or made electricity.

Due to failiure to pay ... they confiscated the Ships untill `PENELTIES` were paid for losses

In desperation the Turkish company files court orders to get ships back with

I mean their actions may have cost losses of 1-1.5 Billion dollars but they want to give back mere 10 million dollars and do not take responsibilties

Which is why the ships were confiscated for `BREACH of contract

Why would the ships owe money? The ships are providing the service so it's the other side that is owing the money.

 

[AZADPAKISTAN2009]

No , when you get a Contract worth 600 Million US dollars you are expected to fullfill the duties of meeting the contract requirements or you face penelties

That is standard practice , when Turkish company did not paid the fines , the only thing that could be done was to keep the ships docked , as stated in the article NAB(Government Organization) stated that the company owed 120 Million dollars of unpaid dues

Had Pakistan known that the Turkish company will not Make energy , the 500 Million dollar would have been spent on other local projects may be construct a water DAM or Nuclear plant

The issue is `FAILIURE to honor contract and produce electricity per contract requirements`

Had electricity been produced there would be no issues

Seems like the Turkish company gambled that Oil prices will not increase, when priced raied the small margin of Profit became ZERO and so they did not produce electricity and instead wanted to get out of contract but the damage was done to economy

When dues are not paid even in USA , assets (cars, homes , trucks , boats are confiscated... for failiure to pay creditors)

In this case the creditors are Government of Pakistan who paid 600 Million yet go 0 percent electricity , and loses resulted to eocnomy due to failed project

Normally companies have credit lines of 1-5 million , but Turkish company owes 120 Million dollars so that is alot of `LOoSE ENDS`...


AGAIN my wish is that this issue is resolved to not discomfort our Turkish brothers ..

We just need to ask simple question contract was signed 5 years Produce electricity = Yes
How much money was involved = 500 Million UD Dollars paid to execute the contract
Was the electricity produced = No
Was there fines unpaid = Yes 120 Million dollars
Did the project do what it was intented to do = No
Did economy / people suffer due to no electricity = Yes
What assets can be confiscated for bad business practice = Ships or Bank Accounts

 

[qasimali]

Because they never produced the electricity as per agreement.

 

[T-Bortecine]

No , when you get a Contract worth 600 Million US dollars you are expected to fullfill the duties of meeting the contract requirements or you face penelties

That is standard practice , when Turkish company did not paid the fines , the only thing that could be done was to keep the ships docked , as stated in the article NAB(Government Organization) stated that the company owed 120 Million dollars of unpaid dues

Had Pakistan known that the Turkish company will not Make energy , the 500 Million dollar would have been spent on other local projects may be construct a water DAM or Nuclear plant

The issue is `FAILIURE to honor contract and produce electricity per contract requirements`

Had electricity been produced there would be no issues

Seems like the Turkish company gambled that Oil prices will not increase, when priced raied the small margin of Profit became ZERO and so they did not produce electricity and instead wanted to get out of contract but the damage was done to economy

When dues are not paid even in USA , assets (cars, homes , trucks , boats are confiscated... for failiure to pay creditors)

In this case the creditors are Government of Pakistan who paid 600 Million yet go 0 percent electricity , and loses resulted to eocnomy due to failed project

Normally companies have credit lines of 1-5 million , but Turkish company owes 120 Million dollars so that is alot of `LOoSE ENDS`...


AGAIN my wish is that this issue is resolved to not discomfort our Turkish brothers ..

It's just private business so really it won't bother us. All government can do is try to make peace between them and resolve.

 

[AZADPAKISTAN2009]

I do hope that government steps in to resolve matter - elections are due in 3 months hopefully new government will focus on business side

We can make Nuclear plants , the ships were used for emergency usage , the idea was to have temporary solution I doubt these ships serve any long term usage for Pakistan

But they failed to meet the goal we had to lower energy crisis sadly due to oil price increase from you KNOW who .. GCC countries