PDP: Turkish energy firm faces accusations in Africa, Middle East & beyond

Popular Democratic Party Senate Minority Leader Luis Javier Hernández Ortiz

By The Star Staff

The Popular Democratic Party (PDP) delegation in the island Senate raised concerns Monday about the Puerto Rico government’s potential hiring of a Turkish company with a questionable global reputation to tackle the upcoming power generation crisis this summer.

Sens. Luis Javier Hernández Ortiz, José Luis Dalmau Santiago, Marially González Huertas, Ada Álvarez Conde, and Josian Santiago Rivera cautioned that while Energy Czar Josué Colón Ortiz has announced plans to seek a company for temporary power generation services, one of the candidates under consideration, the Turkish company Karpowership, has a troubled track record internationally.

“It is crucial to develop alternatives to address the anticipated blackouts caused by insufficient power generation. Experts project that there could be up to 90 blackouts by the end of 2025. This crisis stems from the limited energy output of the current operational generating units,” Dalmau Santiago said at a news conference at PDP headquarters. “However, the government is evaluating Karpowership, a company known for its controversies in the energy sector and which is under international scrutiny due to its poor performance in various countries.”

He added that information has surfaced indicating that Colón Ortiz has already met with the company to discuss power generation services.

The senators highlighted several corruption cases against officials affiliated with Karpowership in Lebanon, South Africa, Pakistan, Guyana, Iraq and Sierra Leone, which indicate unethical practices and illegal activities in government contract procurement.

“I urge the administration of Governor Jenniffer González and Josué Colón to closely monitor the ongoing bidding process,” emphasized Sen. Luis Javier Hernández Ortiz, the PDP minority leader in the upper chamber. “On one hand, there is a company with a troubling history of corruption, and on the other, representatives of this company are meeting and negotiating in Puerto Rico before the bidding has even taken place.”

According to international reports, Karpowership and its parent company, Karadeniz Holdings, have a history that raises significant concerns regarding transparency and ethics in their operations.

“Since its establishment, Karpowership has faced multiple corruption allegations, primarily involving the payment of millions of dollars to government officials and their associates,” Dalmau Santiago said.

Álvarez Conde added that a potential partnership with Karpowership is further complicated by its history.

“Once contracted and generating energy, Karpowership has been known to shut down its plants and leave countries without power to pursue new negotiations or manage payments,” she said. Santiago Rivera noted that “[s]pecifically, in Sierra Leone, Guinea-Bissau, and Sudan, the company deliberately caused blackouts for financial gain.”

“In Lebanon, they attempted to obstruct an investigation into corruption,” he said.

Dalmau Santiago emphasized the urgent need to address the shortage of more than 800 megawatts, especially given the expected increase in energy demand between May and September, but insisted that it must be done responsibly.

On March 11, Colón Ortiz told the media that to meet the increased demand for power, they were evaluating “a technology that consists of vessels with installed plants.” He cautioned that “we already face enough challenges with privatized energy companies; we cannot exacerbate the situation with this company.”

The energy czar, who also serves as the executive director of the Public-Private Partnerships Authority, said he has commenced meetings, evaluations and negotiations to contract the barges with generation units and position them in “strategic coastal locations.”

The senators contended that if the government does not take action, Puerto Rico will end up with a leonine contract like the ones with Genera PR for power generation and Luma Energy for power transmission and distribution.