Georgian government looks for new investor for construction of Anaklia port

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Georgian government is looking for a new investor for the construction of the deep sea port of Anaklia, Minister of Regional Development and Infrastructure Maya Tskitishvili said, Trend reports citing Georgian media.

On Jan. 9, 2020, the Georgian government has decided to terminate the investment agreement with the Anaklia Development Consortium (ADC).

“We have said many times that our country needs Anaklia port for economic security and for full realization of material and technical potential. The Anaklia port project belongs to the state, not to a private investor. The state initiated the implementation of this project; the state expressed interest in implementing this project back in 2014,” the minister said.

According to her, a financially strong investor is needed to implement the project.

“Georgia needs this port, so we will look for a new partner who can quickly implement this project,” said Tskitishvili.

“We are confident that the process of finding a new investor will be transparent,” said Natia Turnava, minister of Economy and Sustainable Development of Georgia.

Meanwhile, ADC 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 report said.

More than two years ago, ADC committed to build a deep-sea port in western Georgia but failed to fulfill the obligations. Thus, the Georgian government plans to announce a new tender for the development of the Anaklia port project.

In December 2019, ADC for the seventh time was unable to fulfill its obligations and provide the government with documentation of loan agreements with banks

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.