Turkey's Karpowership, which provides electricity to Lebanon from two barges, said on Friday it was shutting down supplies over payment arrears and a legal threat to its vessels as the nation grapples with a deep economic crisis.
The company, which supplies 370 megawatts (MW), or about a quarter of Lebanon's current supply, told the government this week it would have to shut down unless there were moves towards settling the issues.
The shutdown threatens longer daily power cuts across the heavily indebted nation, which did not have enough capacity to meet demand even before Karpowership's move on Friday.
Many people in the country, which has seen its currency collapse since a crisis erupted in late 2019, rely on private generators or struggle for many hours a day without power....REUTERS
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In a statement, the company, a unit of Kardeniz, said it was shutting down supplies on May 14. A source familiar with the situation said the step was taken at about 8 a.m. (0500 GMT), as the vessels' fuel had been running down.
ReplyDeleteThe source, speaking on condition of anonymity, said arrears exceeded $100 million, and added that the government had not reached out for talks or to try and resolve a legal case, despite the firm's repeated appeals meant to avert a shutdown.
Lebanon's Finance Ministry said it had been notified by the Turkish firm and cited a lawmaker saying that the country could face "total darkness" in case of a shut-off. It has made no public statement about any talks.
At the weekend, it said it had not been paid for 18 months, a period coinciding with the financial crunch, and added that it sought a "reasonable solution" to maintain generation.