PM Garibashvili: 'we will start selecting new potential investor for Anaklia Deep Sea Port project in near future'
The government had postponed terms for the Anaklia Development Consortium to fulfill its obligations, however despite repeated deferrals, the investor could not fulfill the obligations which led the government to cancel the agreement with the consortium. Photo: PM's press office.
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The Georgian government will start the process of selecting a new potential investor for the Anaklia Deep Sea Port project in the near future, Georgian Prime Minister Irakli Garibashvili announced earlier today.
Garibashvili said that the government had postponed terms for the Anaklia Development Consortium, the state-tender winner to build the deep-sea port in Anaklia, western Georgia, to fulfill its obligations, however despite repeated deferrals, the investor could not fulfill the obligations which led the government to cancel the agreement with the consortium.
In addition, the government handed over to the investor an investment area worth 58 million GEL. We have also undertaken the obligation of the construction of a road and railway connecting the port, and the Roads Department has already prepared this project. In addition, the Partnership Fund was prepared to provide a subordinated loan of $100 million to the investor on the condition that the investor would be able to meet the obligation", Garibashvili said.
The deadline for obtaining the funding has been postponed six times.
The consortium has been unable to obtain the needed $400 million in loans from international financial institutions and $120 million from potential investors by the official expiration of the term limits at the end of 2019.
The Anaklia Development Consortium won a state tender to construct the port and signed a deal with the government in 2016 with TBC Holding as its principal partner, but has faced problems in attracting the $2.5 billion in funds needed to construct the port.
Construction of Anaklia Deep Sea Port started in 2017.
Anaklia Development Consortium is going to appeal to the International Court of Justice in response to the Georgian government’s cancellation of the investment agreement with the consortium to build the Anaklia Deep Sea Port.
The Georgian government will begin procedures to cancel the investment agreement signed with the Anaklia Development Consortium on October 3, 2016 to build the Anaklia Deep Sea Port. The consortium has been unable to obtain the needed $400 million in loans from international financial institutions and $120 million from potential investors by the official expiration of the term limits at the end of 2019.
The Georgian government says that the Anaklia Development Consortium (ADC) has the right to start arbitration but that the government is not going to renew the agreement with the ADC to build the Anaklia Deep Sea Port.
The Anaklia Development Consortium, which has been overseeing the Anaklia deep sea port since 2016, announced yesterday that it “remains committed to finding a way forward for the future success of the project” and hopes that it may be possible to resolve its dispute with the Government of Georgia amicably.
The final hearing in a case of alleged money laundering involving founders of TBC Bank and current leaders of the Lelo Opposition party, Mamuka Khazaradze and Badri Japaridze, has been postponed to January 11 on the request of the prosecution.
Revenues from transport services in Georgia will increase by about $150 million compared to 2021 and exceed $960 million in the ongoing year, Georgian-based non-governmental organisation Society and Banks revealed on Monday.
The Georgian Government has plans to hire a consulting group which will ensure aid in selection of investors and other mandatory procedures for facilitating the construction of the deep sea port in Georgia’s Black Sea town of Anaklia, Georgian Economy Minister Levan Davitashvili said on Monday.
Georgian Prime Minister Irakli Garibashvili on Monday announced the Government was planning to “urgently” launch an international competition for selecting investors to complete the Anaklia deep-sea port on western Georgia’s Black Sea coast, adding the project would also involve state participation.
The long-anticipated construction of the Anaklia deep sea port on Georgia’s Black Sea coast will start this year, Prime Minister Irakli Garibashvili announced on Monday.