Turkey denies bankruptcy of Afghan dam project firm

Monday, 03 July 2017 03:35 Written by  Heart of Asia Published in Economy Read 191 times

Ankara has denied that the Turkish company which won share in a multimillion Afghan dam project is bankrupt.

Pimatek is among winners of $79 million contract from the Afghan government for construction of third phase of Kamal Khan Dam in southwest Nimroz province, which was launched in April.

 

Ahead of the signing of the contract, Afghan Ministry of Economy in letters to concerned authorities had said that the company had officially claimed bankruptcy to a Turkish court.

However, Turkish Embassy in Kabul has rejected the ministry’s report.

“The Embassy does not concur with this letter. The reporting there is not correct and full,” the embassy said in a letter to Afghan Foreign Ministry dated May. “Pimtek Company is in operation and eligible for tenders.”

Afghan Ministry of Energy and Water also said that the documents showed that Pimatek is not in bankruptcy. Abdul Basir Azimi, the ministry’s spokesman, said that the company has carried out 5 percent of work on Kamal Khan dam project and continues its operation.

With the completion of the project, the dam would have the capacity to reserve 52 million cubic meters of water to irrigate more than 80 hectares of land. The project is due to be completed in three and half years.