Turkish Firm Resumes Supplying Lebanon with Power
Turkish company Karpowership on Tuesday announced that it has decided to resume supplying Lebanon with electricity from its two power ships Fatmagul Sultan and Orhan Bey.
Noting that the move will take effect today, Tuesday, the firm said its decision comes as a “goodwill gesture” as it “looks forward to a constructive dialogue with the Lebanese state in order to find solutions for the pending issues within the coming days and weeks.”
“The Karpowership company deeply understands the huge challenges that Lebanon is facing at the current time, and it has proven its continuous support as soon as possible. And despite the disappointing events of the past months, the Karpowership company renews its commitment to finding a practical solution,” it said in a statement.
The decision is expected to increase electricity supply by about four to six hours a day.
The company’s move comes amid a dire power supply crisis in the country that is related to fuel shortages and the severe financial crisis.
Karpowership had shut down its operations on May 14 over delayed payments and the threat of legal action against its vessels. The move increased outages in the crisis-hit country.
At the time, the company said it took the shutdown decision because of 18 months of overdue payments in excess of $100 million. However, the decision came after a Lebanese prosecutor threatened to seize the ships, pending an investigation into corruption and graft allegations. The company has called those accusations baseless.
The company provides around 370 megawatts -- about a quarter of Lebanon's supply - through two electricity barges that have been anchored off the Lebanese coast since 2013. The company's contract expires in September.
Blackouts have been a fixture of life in Lebanon since the 1975-1990 civil war, with Lebanon relying mostly on imported diesel for the powerful generators cartel that lights up people's houses in the absence of government electricity.
Successive governments have failed to agree on a permanent solution for the chronic electricity failures, largely because of profiteering, endemic corruption and lack of political will.
Lebanon has been shaken by an unprecedented economic and financial crisis that has seen the collapse of the local currency, which lost around 90% of its value, and a severe shortage of dollars -- dramatically impacting the country's ability to import basic goods.
Fuel imports are subsidized, but lack of foreign currency is making it harder to secure resources.
Source: Naharnet
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