Karkey claimed that Pakistan had continued to detain its vessels since April 2012 even after issuance of a no-objection certificate by NAB. PHOTO: FILE
This is one of the largest claims filed with ICSID, the Washington DC-based arbitration body, says a press release.
The memorial on the merits puts in writing Karkey’s official position and the amount of damages to be claimed.
Karkey is seeking compensation from Pakistan for what it says breach of obligations under the bilateral investment treaty, breaches of international law and defiance of ICSID’s provisional measures, in connection with Karkey’s investment in a rental power project (RPP) in Karachi.
The initial contract value of Karkey’s Powership operations in Pakistan was $560 million for the duration of five years. The amount claimed includes damages as a result of the loss of earnings and costs associated with the detention of its vessels.
In the memorial filed on January 31, Karkey claimed that Pakistan had continued to detain its vessels since April 2012 even after issuance of a no-objection certificate by the National Accountability Bureau (NAB), clearing the company of any wrongdoing.
The power producer also said Pakistan failed to comply with the provisional measures taken by the ICSID in October 2013 for the release of Turkish-flagged Powership Kaya Bey to Dubai for undergoing maintenance.
Published in The Express Tribune, February 11th, 2014.
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So the cost of the conflict between Pakistani courts and the executive is $2 billion. Will the judiciary or the executive pay for this? Of course not… Pakistani people’s taxes will pay. That is not fair…
I agree.. It is obvious that Pakistan will lose the case, and of course Pakistani people will end up paying the bill. How do they expect investors come to Pakistan after this?
Pakistan will lose the case and the people will pay.........the actual culprits are roaming free and already looking at 2018 to come back to loot and plunder AGAIN.
Being a brotherly Muslim country, Turkey can surely wave off the claimed amount.
THE PERSON WHO SIGNED AGREEMENT AND PERSON WHO DIRECTED HIM TO SIGN SUCH KNOWN FRAUD DEAL SHOULD PAY EVENT CASE GOES AGAINST GOVT., AS GOVT IS BELONG TO PUBLIC AND PUBLIC WILL NOT PAY
Pakistan is losing all cases in international courts, be it a dispute for resources like water and minerals or a commercial dispute. It is a result of decades and decades of neglect of education. They do not have any professionals in any field. The lawyers and judges in Pakistan's courts, even if educated in modern institutions, are all madrassa minded. They take up only blasphemy cases and dish out kangaroo court verdicts. Even the NS government thinks that making arabic compulsory studies in schools is the best way to tackle terrorism. Hate teachings in school text books keeps on increasing. This only makes the future generations extremist minded and they lose all ability to think rationally. Talibans are killing doctors, teachers and engineers regularly. If everything is viewed from an angle of Islam only, there will be costs to be paid. Another huge claim from Iran on the IP pipeline is coming soon.
Our illustrious ex-PM Raza was involved in this racket. Damages bill from friendly Islamic country for $2.1B is a whopper. If the WB agrees then Mr. Raza's wealth should be used to make the payment. Corruption galore.
Reminiscent of Reqo Diq - seizing assets of international investors has consequences.