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

[Saithan]

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.

November/02/2012

source: HDN

 

[JAT BALWAN]

Means more energy crises to follow ...

By the way what fuel these ships used for producing electricity ?

 

[OrionHunter]

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.

That means another 6 million people of Karachi and suburbs will be going without electricity soon? Wow! That sucks!

 

[Capt.Popeye]

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.

November/02/2012

source: HDN

The underlined part is the key to the matter. If the second party to the agreement did not fulfill its obligations; i.e. to provide timely and sufficient fuel, then the first party will not be liable to breach of agreement.
Probably why the agreement was abrogated and the arbitration clause(s) were not invoked.

Means more energy crises to follow ...

By the way what fuel these ships used for producing electricity ?

Most probably Diesel, not HSD but LDO or MDO.

 

[Saithan]

The "floating" powerplant uses diesel to fuel produce electricity, there was a thread about this a long time ago. And in that same thread there was focus on that Russia also had a floating powerplant, although the difference was that the Russians had a floating nuclear powerplant.

 

[Ajaxpaul]

Do pak have an alternative to compensate for this ?

 

[Capt.Popeye]

Do pak have an alternative to compensate for this ?

What is there to compensate for? For some reasons (which are mentioned in the report) the ships did not generate any significant amount of power. So their departure from Karachi is no loss really.

 

[Saithan]

What is there to compensate for? For some reasons (which are mentioned in the report) the ships did not generate any significant amount of power. So their departure from Karachi is no loss really.

Despite only delivering 60 MW due to the sporadic delivery of fuel, it's still enough to provide energy to 30% of Karachi. The ship has the capacity to deliver 232 MW, but that requires that the flow of diesel has to be constant.

Perhaps it's an attempt to renegotiate the contract, or it's because Karachi is able to provide the energy elseway.

 

[Death Rattle]

Dark days ahead for people of karachi.

 

[Capt.Popeye]

Despite only delivering 60 MW due to the sporadic delivery of fuel, it's still enough to provide energy to 30% of Karachi. The ship has the capacity to deliver 232 MW, but that requires that the flow of diesel has to be constant.

Perhaps it's an attempt to renegotiate the contract, or it's because Karachi is able to provide the energy elseway.

You are absolutely right about the fuel angle. If there is'nt sufficient fuel supplied in time, how can the generators run?
About 60 MW being 30% of Karachi's needs seems to be off the mark. Because that would mean that Karachi consumes only about 200 MW of power which seems very unlikely. Karachi city; considering its size will more likely have a consumption of about 800-1000 MW. But I do not know that figure for sure. Somebody else may be able to inform us better.

 

[Xestan]

Karachi's total consumption is around 800 MW, 750MW last time I checked. If my info is not outdated.

The issue of this Turkish ship is complicated. First, it wasn't working on its full capacity, due to many reasons and secondly, this is the VERY EXPENSIVE alternate of generating electricity for Karachi. Supreme Court's order has cancelled all 'Rental Power Plants' contracts done by our current PM, the amount of corruption in these contracts was shockingly very high.

And, as some members have said, 30% of Karachi wont go into dark following this, actually 30% of Karachi was never dependent on this ship. Karachi today, even without the 60MW this ship is producing, is alright. There's hardly any load-shedding these days. And, Karachi, even in the worst energy crisis in the country never face more than 4-8 hours of load-shedding per 24 hours. Power management is good there compared to rest of the country.

 

[LegionnairE]

Anyway, I hope we did all we can..

 

[BATMAN]

That means another 6 million people of Karachi and suburbs will be going without electricity soon? Wow! That sucks!

There is one complete power house being ready for operation at port Qasim, from last 5 years.

Project was laid out by last govt. completed 4 years ago.

Zardari, regime never allowed its operation.. why?

 

[Xestan]

Anyway, I hope we did all we can..

Surely, you did, mate

 

[RayKalm]

I do wish that this rental power plant promised to deliver the full amount of watts rather than just 1/4th, I am not very educated in electricity, so their may have been problems elsewhere.