Georgian government awaits decision of Anaklia consortium

Transport Materials 17 December 2019 12:30 (UTC +04:00)
Georgian government awaits decision of Anaklia consortium

BAKU, Azerbaijan, December 17

By Tamilla Mammadova – Trend:

The Anaklia Development Consortium (ADC), which is building the first deep-water port in Georgia, has again failed to fulfill its obligations and has not provided the government with documentation on loan agreements with banks, Trend reports citing the Ministry of Regional Development and Infrastructure of Georgia.

The 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 be provided by the state.

The ADC disseminated a statement related to the Anaklia Deep-Water Port project.

“Despite the current situation that is outside the control of Anaklia Development Consortium, we have identified an investor who is still interested in the project. We informed the Government's representatives during our meeting last week at the Ministry of Regional Development and Infrastructure of Georgia,” said the statement.

“As we have made clear to the Government's representatives, the potential investor needs to see direct support and approval from the Government for the project as well as for them. So far, the Government has not provided such direct support and approval. We are therefore waiting on the Government, given this situation is outside our control, while we actively provide what information we can to the potential investor,” the statement reads.

According to consortium, it is using every means it has within its control to push the project forward, while it waits for the Government's support which is necessary to finalize negotiations with the investor and ensure the future of the project.

“We wish to avoid a legal dispute and are hopeful that the Government will provide the required support in order that we may successfully continue and finalize the project,” said consortium.

On December 19, the deadline for the submission by the Anaklia Development Consortium of loan agreements signed with banks is to expire.

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, which should connect East and West.

Anaklia Port Development Consortium was founded by TBC Holding and the American company Conti International LLC. Later, they joined the American company SSA Marine, as well as British Wondernet Expres (Central Asia) and G-Star Ltd. (Bulgaria). However, Conti International LLC in August announced its intention to leave the Consortium, and now it was left without a main investor.

The construction of the new port began in December 2017, and in July 2018, work began 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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