ADB ready to fund construction of $3B port in Georgia

Business Materials 15 May 2019 12:32 (UTC +04:00)

Baku, Azerbaijan, May 15


The Asian Development Bank (ADB) intends to assist Georgia in exploring the Anaklia project and is ready to invest at least $3 billion in projects related to the construction of the deep-water port in Anaklia on the Black Sea coast of Georgia and the creation of a free economic zone (FEZ) there, said Werner Lipak, general director of ADB in Central and Western Asia, Trend reports via Georgian Interpressnews.

The construction of the century is in full swing on the Black Sea coast of Georgia - work is underway to build the first deep-water port in Georgia. Representatives of the consortium JSC Anaklia Development predict that the port of Anaklia will be the most advanced and high-tech port on the Black Sea coast.

According to Lipak, this project, implemented by the Georgian-American consortium of JSC Anaklia Development, is "the gateway to the world" for Georgia, so the bank will support its development, including providing technical support. Representatives of the Anaklia Development Consortium predict that the Anaklia port will be the most advanced and high-tech port on the Black Sea coast.

"Anaklia is not only a port, it is a whole city, an industrial cluster, it is a whole economy that needs to be developed. We expect to invest at least $ 3billion in this. We want to participate in this project and cooperate with the private sector," said Lipak.

Some international financial institutions have already been attracted to finance the port in Anaklia, including the European Bank for Reconstruction and Development (EBRD), the German Investment Corporation (DEG), the Netherlands Development Finance Company (FMO) and others. Nowadays the consortium got from international financial organizations for the construction of the first of 9 phases of the port in Anaklia about $600 million.

On October 3, 2016, an investment agreement was signed between the Government of Georgia and the Georgian-American consortium Anaklia Development on the construction and management of a deep-water port in Anaklia.

The first phase of the project, which began at the end of 2017, envisages the creation of power with a capacity of at least 7 million tons of cargo per year by 2021, and in subsequent years it is planned to gradually increase the port's capacity to 100 million tons per year. The total cost of the project is estimated at $2.5 billion.

The Anaklia Development Consortium established by the Georgian TVS Holding and the American Conti International LLC received exclusive rights to use the port for a period of 49 years, as well as the right to develop a free economic zone in the adjacent territory.