US-based Conti Group not to leave Anaklia Development Consortium

  • "Conti Group still retains 42 per cent of the shares,” said Levan Akhvlediani, general director of the Anaklia Development Consortium earlier today. Photo: Anaklia Port.

Agenda.ge, 25 Oct 2019 - 17:47, Tbilisi,Georgia

US-based construction and development company and co-founder of the Anaklia Development Consortium together with TBC Holding, Conti Group, will not leave the consortium, announced the Anaklia Development Consortium earlier today.

Conti Group still retains 42 per cent of the shares,” said Levan Akhvlediani, general director of the Anaklia Development Consortium earlier today.

On August 15, it was announced that the American Conti Group was leaving the consortium. The reason was the developments around the Anaklia Deep Sea Port project, in which no agreement had been reached between the government of Georgia and the project investor banks (EBRD, OPIC, ADB and AIIB). 

Another reason of Conti Group’s concern was developments around consortium founders from TBC Holding Mamuka Khazaradze and Badri Japaridze who were charged with laundering $16.7 mln.

The Georgian government allows the Anaklia Development Consortium to try to come up with the needed capital for the project by the end of 2019. 

The Georgian government has not cancelled the current investment agreement despite the expired deadline (October 15) for the consortium to finalise agreements with potential investors and financial institutions to bring in $520 million in total in investments. 

The latest timeline presented by the consortium says that the construction of the port will be completed in June of 2022 . Photo: Anaklia Development Consortium.

Specifically, the consortium was supposed to have submitted signed documents with international financial institutions for $400 million in loans and with investors for capital of $120 million.

The government has postponed the consortium’s deadline for obtaining the funding six times since 2017.

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.

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