BAKU, Azerbaijan, Jan. 9
By Tamilla Mammadova – Trend:
Georgian government has decided to terminate the investment agreement with the Anaklia Development Consortium (ADC), Georgian Minister of Regional Development and Infrastructure Maya Tskitishvili said, Trend reports citing Georgian media
As reported, more than two years ago, ADC committed to build a deep-sea port in western Georgia but failed to fulfil the obligations. Thus, the Georgian government plans to announce a new tender for the development of the Anaklia port project.
ADC in December for the seventh time was unable to fulfill its obligations and provide the government with documentation of loan agreements with banks, said the report.
To implement the project, ADC requested a loan of $400 million from such international financial institutions as European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Overseas Private Investment Corporation (OPIC) and National Board of Revenue (NBR); however, they put forward conditions that must have been provided by the state.
"The government discussed this issue and decided that further postponement will not have a positive outcome for the implementation of the project. During this period, the consortium, through its actions, unfortunately, proved that it could not implement this project," the minister said.
The deadline for the submission of loan agreements signed with banks by the Anaklia Development Consortium expired on December 31, 2019.
The decision to build a deep-sea port in Anaklia was made by the Georgian authorities to increase the transit potential of the country and to join the New Silk Road project.
Anaklia Port Development Consortium was founded by TBC Holding and joined by American companies Conti International LLC and SSA Marine, British Wondernet Express and G-Star Ltd. (Bulgaria). However, in August 2019, Conti International LLC announced its intention to leave the consortium, and ADC was left without the main investor.
The construction of the new port began in December 2017, and in July 2018, work commenced on deepening the bottom to 16 meters. However, at this stage the work was suspended.
The total project cost is $2.5 billion.
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