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2013
Karkey Karadeniz v. Pakistan Karkey Karadeniz Elektrik Uretim A.S. v. Islamic Republic of Pakistan (ICSID Case No. ARB/13/1)
Nationality of the parties
Pakistan
Turkey
Summary of matters at issue
Rights under a contract concluded with a State-owned electricity company to provide four power-generating vessels to the port of Karachi.
Claims arising out of the alleged unlawful detention by the Government of four electricity-generating vessels owned by the claimant, as well as alleged breaches of contractual payment obligations for electricity generated.
Economic sector and subsector
Tertiary: D - Electricity, gas, steam and air conditioning supply
35 - Electricity, gas, steam and air conditioning supply
Arbitral rules and administering institution
ICSID (International Centre for Settlement of Investment Disputes)
ICSID (International Centre for Settlement of Investment Disputes)
Composition of tribunal
Derains, Y.
Grigera Naón, H. A.
Edward, D. A. O.
Status/Outcome of original proceedings
Decided in favour of investor
Decisions rendered
Decision on the Respondent’s request to address the objections to jurisdiction as a preliminary question dated 13 May 2014
Amount of compensation
2000.00 mln USD
490.40 mln USD
IIA breaches alleged/found
Direct expropriation

Transfer of funds
Direct expropriation

Transfer of funds
Follow-on proceedings
ICSID annulment proceedings
ICSID annulment proceedings
Pending
None
Böckstiegel, K.-H. (President)

Bull, C. (Member)

Ufot, D. U. (Member)
Link to Italaw's case page
Links to background sources
https://icsid.worldbank.org/en/Pages/cases/casedetail.aspx?CaseNo=ARB/13/1
http://www.iareporter.com/articles/20121221_2 (requires subscription)
http://globalarbitrationreview.com/news/article/31355/pakistan-faces-icsid-claim-detaining-turkish-ships/ (requires subscription)
http://globalarbitrationreview.com/news/article/31990/pakistan-ordered-release-detained-vessel/ (requires subscription)
http://globalarbitrationreview.com/news/article/32455/pakistan-changes-counsel-power-ship-claim/ (requires subscription)
http://www.iareporter.com/articles/pakistan-seeks-to-overturn-hefty-award-in-favour-of-turkish-investor/ (requires subscription)
http://www.iareporter.com/articles/turkish-investor-karkey-wins-icsid-claim-pakistan-confirms-to-iareporter-that-it-lost-case-but-is-pursuing-settlement-local-media-report-that-liability-approaches-700-million/ (requires subscription)
https://www.iareporter.com/articles/three-are-named-by-icsid-to-hear-pakistans-bid-to-overturn-hefty-800-million-arbitration-loss/ (requires subscription)
https://globalarbitrationreview.com/article/1147493/pakistan-faces-ususd800-million-bill-for-detaining-power-ships (requires subscription)
https://globalarbitrationreview.com/article/1149985/pakistan-seeks-to-reverse-icsid-defeat-in-power-vessel-case (requires subscription)
http://www.karadenizenergy.com/en/Web/PressReleasesDetail/438
https://www.arnoldporter.com/en/services/experience/karkey-karadeniz-elektrik-uretim-as/karkey-karadeniz-elektrik-uretim-as-v-the-islami__
https://tribune.com.pk/story/1555330/1-pakistan-gets-stay-800m-karkey-penalty/
https://www.iareporter.com/articles/karkey-v-pakistan-part-1-of-3-tribunal-finds-no-trace-of-corruption-and-views-certain-evidence-offered-for-sale-to-pakistan-as-a-probable-extortion-manoeuvre/ (requires subscription)
https://www.iareporter.com/articles/karkey-v-pakistan-part-2-of-3-arbitrary-supreme-court-ruling-is-judicial-expropriation-free-transfers-clause-breached-in-preventing-departure-of-vessels/ (requires subscription)
https://www.iareporter.com/articles/karkey-v-pakistan-part-3-of-3-in-determining-damages-tribunal-applies-country-risk-and-size-premia-and-awards-half-investors-costs-due-to-pakistans-lack-of-cooperation-in-the-p/ (requires subscription)