Infrastructure Minister: if Anaklia Development Consortium fails to fulfill obligations, gov't may cancel agreement
If the consortium fails to fulfill its interim obligations by the end of October 15, 2019, the Georgian government has the right to cancel the investment agreement signed between the parties on October 3, 2016 for the construction of Anaklia Port”, said Tskitishvili. Photo: Ministry of Infrastructure.
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Georgian Minister of Infrastructure Maia Tskitishvili said earlier today that if the Anaklia Development Consortium fails to finalise agreements with potential investors and financial institutions to bring in $520 million in total in investments, the government may cancel its investment agreement with the consortium.
Per the agreement made in June 2019, the deadline for Anaklia Development Consortium to obtain the needed $400 million in loans from international financial institutions and to put forward its own capital of $120 million is the end of 2019.
If the consortium fails to fulfill its interim obligations by the end of October 15, 2019, the Georgian government has the right to cancel the investment agreement signed between the parties on October 3, 2016 for the construction of Anaklia Port”, said Tskitishvili.
The deadline for obtaining the funding has been postponed several times and the consortium was to have met this obligation by the end of 2019. Photo: Anaklia Port.
Instead of supporting, the government has practically sabotaged this project in the last several months," said Levan Akhvlediani, general director of the Anaklia Development Consortium.
Akhvlediani also noted that the consortium is not going to show the documents for today.
As for the government's statement that it has the right to cancel the agreement in case the documents are not submitted, Akhvlediani noted that in this case no high-profile investors or financial institutions would be willing to invest in the project anymore.
Construction of Anaklia Deep Sea Port started in 2017, with the opening of the port and the receiving of ships in Anaklia planned for 2021. Photo: Anaklia Development Consortium.
The Anaklia Development Consortium won the 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, with the opening of the port and the receiving of ships in Anaklia planned for 2021.
The latest timeline presented by the consortium says that the construction of the port will be completed in June of 2022 instead of 2020, announced the Ministry of Infrastructure on July 30.
Despite support from the government, the project has so far failed to obtain the needed $400 million in loans from international financial institutions and to put forward its own capital of $120 million.
The deadline for obtaining the funding has been postponed several times and the consortium was to have met this obligation by the end of 2019.
The Anaklia Development Consortium says it has found two new potential investors for the Anaklia Deep Sea Port in addition to the current investors of SSA Marine from the United States and TBC Holding from Georgia, announced the Anaklia Development Consortium today.
The Anaklia deep sea port does not belong to a single person, but is rather an integral part of the development of the country, Georgian Prime Minister Giorgi Gakharia announced today.
No project has received more state support than the Anaklia project, announced the candidate for Minister of Regional Development and Infrastructure Maia Tskitishvili yesterday in parliament.
Completing the Anaklia Port project is of strategic importance, the Executive Director of the McCain Institute for International Leadership Kurt Volker said in an exclusive interview with Georgia Today published on September 2.
The Georgian Ministry of Infrastructure has announced the government will allow the Anaklia Development Consortium to try to come up with the needed capital for the project by the end of the year. The ministry announced it will not cancel the current investment agreement despite the expired deadline for the consortium to finalise agreements with potential investors and financial institutions to bring in $520 million in total in investments.
Georgian Minister of Economy Natia Nurnava has urged the Anaklia Development Consortium “to meet its obligations in time” after the government meeting today.
The Dutch company Van Oord, an international contractor specialising in dredging, marine engineering and offshore projects (oil, gas and wind), has become the owner of four per cent of shares of the Anaklia Development Consortium.
Georgian Minister of Infrastructure Maia Tskitishvili said earlier today the government cannot continue cooperating with the Anaklia Development Consortium if the latter is unable to fulfill its obligations to secure funding for the project in a timely manner.