More power this summer

Karadeniz delays delivery of its second ship

Power supply is expected to reach 1,900 MW this summer, according to the Ministry of Energy and Water. The power production currently stands at 1,650 MW and will increase to 1,700 MW this month and 1,900 MW by July.

This will translate into 16 hours of electricity a day for areas outside Beirut. “Last summer power supply stood at 12 hours, but this year it will be higher despite the increasing demand by Syrian refugees,” Minister Gebran Bassil said.

Bassil said supply could reach 2,100 MW, or 18 hours per day, were it not for some obstacles: Some technical failures in the power plants and the barges, lack of regular supply from Syria, and insufficient funds for Electricité du Liban (EDL).

The Turkish firm Karadeniz was set to deliver its second power ship on June 12 but failed to comply with the deadline. “As of today, the company will pay (the government) a compensation of $1,000 for each Megawatt per each day of delay, which rounds up to $82,000 per day,” Bassil said.

A source familiar with the deal with Karadeniz said the contract indicated that the second ship was scheduled to arrive six months after the first. As per the contract, Karadeniz Powership Fatmagül Sultan was supposed to arrive in August last year but was delayed until February 2013. “If the delay was caused by the company, it has to pay penalties, whereas if the delay was from our side then no penalty shall be imposed,” said the source. The two ships are expected to give a total output of 270 MW.

Bassil said power supply should improve to between 20 and 22 hours a day in the summer and autumn of 2014, then reach 24 hours a day by 2015.