The Anaklia Development Consortium (ADC), which has been overseeing the Anaklia deep sea port since 2016, announced yesterday that it “remains committed to finding a way forward for the future success of the project” and hopes that it may be possible to resolve its dispute with the Government of Georgia (GoG) amicably.
Regrettably the GoG has not yet engaged in any meaningful way in discussions with ADC and has not taken any constructive steps to avoid arbitration”, the ADC said adding that, therefore, it “will be left with no choice but to arbitrate its dispute with the GoG”.
Its international investors “will also be commencing proceedings” against the Government of Georgia.
The ADC announced that it is fully committed to taking all legal and other steps necessary to protect its position, including the commencement of international arbitration proceedings in Geneva.
It noted as well that the GoG “has been unwilling to work together with ADC and others to find solutions to issues raised by internationally recognised lenders and investors”.
ADC has invested more than USD 75 million to make the Anaklia Deep Sea Port a reality and has worked hard to find and appoint a port terminal operator, prepare the particulars for the design and build of the facility, and start significant dredging and other preparatory ground works on the site”, the Consortium stated.
The opening of the port and the receiving of ships in Anaklia was planned for 2021. Photo: Anaklia Development Consortium
It further stated that the actions of the GoG “have made it impossible for ADC to finalise key terms with potential investors whose involvement is essential to the continuation and future success of the Anaklia project”.
The GoG is well aware of the problems it created yet has blamed ADC for the lack of necessary investment and used this as an excuse to terminate the Investment Agreement. ADC does not accept that the GoG is entitled to terminate the Investment Agreement”, the ADC said.
The Consortium also explained that “practically, this means that no further physical works can be undertaken at the site and it is unclear when the Anaklia Port Project will be built and able to operate”.
The Anaklia Development Consortium won a 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.