Pakistan ordered to pay Karkey about $800 million over seized powerships
Short record: the main facts, with sources. A full case file has not been prepared.
- The record does not name which of my species, waters, soils or forests were harmed.
Pakistan's Supreme Court found Karkey's powership contract irregular and annulled it, and an ICSID tribunal then awarded the company compensation. The sources reviewed do not describe the plants' environmental impact.
- Karkey (Karadeniz Holding) — Award of about $800 million against Pakistan IISD
- Pakistani taxpayers — Bear the award, per the sources reviewed
What happened
Pakistan's Supreme Court found Karkey's contract irregular and annulled it.
An ICSID tribunal awarded Karkey compensation for the seizure of its power vessels and dismissed Pakistan's counterclaim, IISD reported in October 2018.
The award is put at about $800 million, against a contract value of $565 million.
Allegations of a commission letter in Lebanon and a changed tender in South Africa remain under investigation.
In court and with insurers
Lawsuits and rulings
- 2018Claimant wonKarkey v Pakistan (ICSID award)ICSID arbitral tribunal · Arbitration · Karkey (Karadeniz Holding) → Government of Pakistan
The tribunal awarded compensation for the seizure of the vessels and dismissed Pakistan's counterclaim. IISD
Insurers
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Record
- Insufficient Reported but not verified: a commission letter in Lebanon, and that prosecutors seized the vessels there.
- Insufficient Reported but not verified: a South African tender whose rules were changed in the company's favour (amaBhungane investigation).
- Insufficient The outcome of the ICSID award after 2019 (payment, settlement or annulment bid) is not verified.
- None on record The environmental impact of the powerships is not described in the sources reviewed.
Did the harm stop?
Not stated in the sources reviewed.
Who paid?
Not stated in the sources reviewed.
Sources
Communities and civil society
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