The Fatmagül Sultan, one of two barges that Lebanon leases from Karadeniz through its subsidiary Karpowership. (Credit: PHB)
BEIRUT — Turkish firm Karpowership says its two offshore power barges will resume providing electricity to Lebanon starting today.
“This decision is made out of goodwill,” a statement from the company said, adding that it “understands well the significant challenges the country [Lebanon] is facing.”
Turkish energy company Karadeniz, which supplies electricity to Lebanon from the two ships operated by its subsidiary Karpowership, shut down its barges in mid-May over payment arrears and in the face of a legal threat against the company. Lebanese financial public prosecutor Judge Ali Ibrahim at the time issued a judicial order to seize the firm’s vessels pending an investigation into corruption in the renewal of power-supply contracts.
The stoppage reduced Lebanon’s electricity production capacity by about 240 megawatts, the state utility, Électricité du Liban, said at the time.
The Istanbul-based firm denied the allegations in May and said that it had not received payment for its services for 18 months, a time frame coinciding with the start of Lebanon’s crippling economic crisis, which has seen its national currency collapse to record lows, trading at LL17,500 to the US dollar on the parallel market this past weekend.
As of the end of 2020, Lebanon owes Karpowership approximately $180 million, according to a policy paper published by AUB’s Issam Fares Institute for Public Policy,
A company spokesperson could not be immediately reached to confirm whether these issues have been resolved.
The company said in Tuesday’s statement that it remains committed to finding a workable solution, “despite deeply disappointing events in recent months.”
EDL could not be reached for comment on the Karpowership’s announcement, while Lebanon’s Energy Ministry declined to comment.