The Pakistan Tehreek-e-Insaf (PTI) led government has reportedly initiated ‘revision proceedings’ in the International Centre for Settlement of Investment Disputes (ICSID), to set aside the 2017 award in Karkey Karadeniz versus Pakistan. As per sources Pakistan has gathered fresh ‘evidence of corruption’ in the procurement of a rental power project (RPP) contract by the Turkish company.
A senior government official has revealed that the decision had been taken with the approval of Prime Minister Imran Khan. “Neither will we go for an out-of-court settlement nor submit an offer to deposit $150 million [Rs23.55 billion] as a security payment to seek stay in the enforcement of the $900 million award,” the official said.
The official said confessional statements of former water and power secretary Shahid Rafi and two other officials would also submitted to the tribunal as evidence of corruption in the procurement of the contract by the Turkish company.
On August 22, 2017, ICSID made the award to Karkey after the company filed a case against the government of Pakistan for terminating its rental power project contract. According to the initial ICSID award, Pakistan had to pay damages amounting to more than $800 million, along with $5.6 million (Rs590 million) per month as interest to Karkey. It is learnt that the total amount due is now approaching $900 million.
Pakistan lost the case in the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) in 2017, which was filed by Karkey Karadeniz Elektrik, a company involved in provision of floating power generation facilities.
The ICSID is an international arbitration institution established for legal dispute resolution and conciliation between international investors. The ICSID is part of and funded by the World Bank Group.
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17 November, 2019