Turkish firm tells Lebanon to fix debts, end legal action or face power cut (updated)

Casa Emtia Petrol Kimyevi ve Turevleri Sanayi ve Ticaret

11/05/2021 14:27

(Adds statement from Turkish firm)
    ISTANBUL/BEIRUT, May 11 (Reuters) - Turkey's Karadeniz,
which supplies electricity to Lebanon from power barges, said on
Tuesday Beirut must halt legal action to seize its vessels and
sort out arrears or it will shutdown supplies to the country
that is mired in a financial crisis.
    A Lebanese prosecutor issued a decision last week to seize
the barges and fine the firm after TV channel al-Jadeed reported
corruption allegations tied to the power contract.
    The firm denies the charges and said at the weekend it had
not been paid for 18 months, a period coinciding with Lebanon's
financial crunch.
    A spokesperson for Karpowership, a unit of Karadeniz that
operates the floating plants, issued the demands after Lebanon's
Finance Ministry cited a lawmaker saying the country could face
"total darkness" if the company shut down supplies.
    Even before the economic crisis, Lebanon was unable to meet
power demand, forcing many people to rely on private generators.
Daily power cuts have been growing steadily longer, lasting much
of the day in Beirut, before the latest threat to supplies.
    Lebanese lawmaker Nazih Najem was quoted saying Turkish
power supplies could be halted from the end of this week.
    Lebanon's economy has imploded under a mountain of debt,
leaving the government struggling to find foreign exchange to
meet payments for even basic food requirements and other import
needs, including fuel to run its inadequate power stations.
    The Karpowership spokesperson said Lebanon must halt action
by a prosecutor to seize the company's barges and must draw up a
plan to settle arrears.
    The ministry said Karadeniz had threatened to disconnect
supply amounting to about 400 megawatts (MW), saying this would
reduce generation capacity to 900 MW, well below demand that by
some past estimates is more than three times that level.
    Karadeniz had warned at the weekend that it could cut
supplies, although it also said it hoped a "reasonable solution
can be urgently reached" so it could keep supplies running.
    

 (Reporting by Ellen Francis in Beirut and Can Sezer in
Istanbul; writing by Edmund Blair; editing by Philippa Fletcher)
 ((edmund.blair@thomsonreuters.com; Reuters Messaging:
edmund.blair.thomsonreuters.com@thomsonreuters.net))