Turkish ships set to leave Pakistan as gov’t quits energy rental accords

ISLAMABAD - Anatolia News Agency

Kaya Bey is one of the two Turkish power ships, which were providing some 30 percent of power demand by the 18 million people living in Karachi. AFP photo

Turkish energy ships ”Kaya Bey” and “Ali Can Bey,” which had generated electricity for Pakistan for the past two years, are set to return to Turkey after the Pakistani High Federal Court canceled all energy rental agreements in the country.

Authorities decided the ships had to leave after repaying the unused amount of the deposit given by the Pakistani government.

A statement by the National Finance Office (NAB) said the five-year agreement between the Pakistani government and energy groups was canceled three years ago and that Turkish ships that had guaranteed to provide 232 megawatts of power had provided 60 megawatts of power.

No arbitration

Karkey, the Turkish sister company of Karadeniz Holding, said it had abided by the agreement and the Pakistani government abolished it.

According to the agreement, fuel used for energy generation was to be supplied by the Pakistani government but since the supplies were either late or inadequate, they were incapable of producing the guaranteed amount, a company executive said. The executive added that the NAB did not find Karkey at fault and that the company is not considering arbitration. After the paperwork is complete the ship will leave the country.

The Karkey ships reached Karachi Port in late 2010 after winning an international bid for the project.
The 241-meter “Kaya Bey,” which has 220 megawatts of power, was also carrying aid containers prepared for victims of the Pakistani flood.

The biggest Turkish investment in Pakistan, the ships are capable of supplying 30 percent of the energy needs of Karachi’s population of 18 million when operated at full capacity.