France’s Compagnie de Vichy involved in $750m Tskaltubo project

The French company that runs one of Europe’s leading spa destinations is ready to get involved in a project worth $750 million to develop the Tskaltubo Spa Resort – an area famous for its radon-carbonate mineral springs in west-central Georgia.

France’s Compagnie de Vichy expressed its intention to conduct a hydrology study in Tskaltubo, create a strategy for planning and designing the rehabilitation process of the sanitary zone and prepare a financial model, together with state-owned shareholding company Partnership Fund (PF).

A Memorandum of Understanding was signed today between Compagnie de Vichy and the PF to cement the deal.

The agreement detailed the responsibilities of both parties and future plans of cooperation, such as Compagnie de Vichy’s responsibility to supervise the rehabilitation process and help the resort during marketing campaigns. The company was also ready to give the permission for the Georgian resort to use its logo.

Tskhaltubo Spa Resort's unique water had been known for its healing properties and could cure several diseases including heart disease, nervous system disorders, gynecological issues, skin diseases and more.

The PF was now looking for a potential investor(s) who would finance the Tskaltubo project on a long-term basis. Before releasing any business proposals, the PF completed working on the concept of developing the Tskaltubo Spa Resort together with international consulting company Kohl & Partner.

It is estimated the Tskaltubo Spa Resort renovation and restoration project will cost $750 million USD.

The PF and Kohl & Partner conducted the study to give investors "accurate and objective information” to help them make their best financial decisions.

The Tskaltubo Spa Resort project will include restoring the facility’ thermal baths, rehabilitation of state-owned hotels, building new hotels equipped with modern technologies and medical equipment, building children's entertainment centres and water attractions, developing restaurants, opening trade centres and cultivating the tropical gardens.

Meanwhile Compagnie de Vichy, founded in 1853, is one of the oldest companies of France. At the World Spa Awards 2013, the company was rewarded as one of the three finest European Spa Destinations.