Anaklia Development Consortium: gov’t reneged on support for port project, wiping out economic benefits for Georgia
The ADC Supervisory Board says that infrastructure projects of such scale require government support while the Georgian government strangled ADC’s ability to develop the Anaklia Port project and ‘destroyed a project the government itself originally sponsored.’ Photo: ADC.
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The Anaklia Development Consortium (ADC), the company originally selected by the government of Georgia to develop the Anaklia Port project, has released a statement today which claims the government ran a campaign ‘to undermine the project by dissuading potential project investors, lenders, contractors and suppliers from joining the project in order to kill it'.
The ADC Supervisory Board says that infrastructure projects of such scale require government support while the Georgian government strangled ADC’s ability to develop the Anaklia Port project and ‘destroyed a project the government itself originally sponsored.’
The government manufactured all sorts of excuses for not wanting to see various investors, lenders and partners involved in the project, but the government really only had one purpose: to choke the project to death by scaring away everybody who might have an interest in supporting it.
Also, is it beyond coincidence that government ministers – including two prime ministers - who voiced support for the project or otherwise expressed concern about the growing controversy with the project tendered Da their resignations shortly after such comments were made?", reads the statement.
The ADC Supervisory Board stated that the damage to Georgia caused by the government goes well beyond the potential loss of the Anaklia Port and the associated Special Economic Zone.
The conduct of the government is scaring away investors at a time when Georgia cannot afford to lose any more foreign investment. According to the National Statistics Office of Georgia, the amount of foreign direct investment in Georgia has fallen from nearly $2 billion in 2017 to just over $1.3 billion in 2019, and in the first quarter of 2020, stood at only $171.8 million - a catastrophic decrease even before the Covid crisis began to take effect", reads the statement.
To note, the ADC and major foreign investor Bob Meyer have filed independent arbitration claims against Georgia on July 29 over their infringed rights in the Anaklia Port project.
The consortium and Meyer are demanding the restitution of their rights and compensation for damages done to the consortium as a result of what they say was a government campaign during the implementation of the Anaklia Port project.