LAHORE (PR): KARKEY filed a ‘memorial on the merits’ to the World Bank’s ICSID on January 31st claiming $2.1 billion damages against government of Pakistan. The damages have been calculated by international independent experts. The filing with ICSID signals not only a significant move in advancing the arbitration forward but also ranks as one of the largest claims filed to ICSID, the Washington DC-based arbitration body.
Karkey is seeking compensation from Pakistan for breach of its obligations under the bilateral investment treat (BIT), breaches of international law, and defiance of ICSID provisional measures order, in connection with Karkey’s investment in a rental power project (RPP) in Karachi. The initial contract value of Karkey’s Powership operations in Pakistan was $ 560 million for the duration of five years. The claims amount as calculated by experts sums up the damages obtained as a result of the loss of earnings and costs associated with the detention of its vessels.