Meridian Capital Limited says it’s unable to participate in Anaklia Port project at this stage
Anaklia Development Consortium proposed Meridian Capital Limited to the Georgian government as a new investor to replace American Conti International after its decision to leave the consortium. Photo: Anaklia Development Consortium.
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Meridian Capital Limited investment firm says it’s unable to participate in the Anaklia Deep Sea Port project at this stage, announces the Ministry of Infrastructure.
Anaklia Development Consortium proposed Meridian Capital Limited to the Georgian government as a new investor to replace American Conti International after its decision to leave the consortium, which it announced on August 15.
On October 28, 2019, one day before the government’s deadline to approve the new investor, Meridian Capital Limited confirmed that at this stage it does not have the opportunity to become an investor of the Anaklia Deep Sea Port project, and requested the Georgian government to suspend all ongoing procedures regarding the approval of the company.
The Georgian government says that it takes into consideration the request of the company and also says it is ready to support all investors which have relevant experience and financial and business reputation to participate in the Anaklia Deep Sea project.
On October 26, Conti International, a member of the Conti Group and the founding partner in the Anaklia Development Consortium, confirmed that it has “reached an agreement to sell its position in the Anaklia Port Project and exit the Consortium”.
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 latest timeline presented by the consortium says that the construction of the port will be completed in June of 2022 instead of 2020. Photo: Anaklia Port.
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.
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.
Conti International, a member of the Conti Group and the founding partner in the Anaklia Development Consortium, announced that it has “reached an agreement to sell its position in the Anaklia Port Project and exit the Consortium”.
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 Economy Natia Nurnava has urged the Anaklia Development Consortium “to meet its obligations in time” after the government meeting today.
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.
Anaklia Development Consortium has made three demands for the Georgian government; if fulfilled, the consortium will take on the responsibility to successfully build the Anaklia Deep Sea Port, announced the director of Anaklia Development Consortium Levan Akhvlediani today at parliament.
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.