The Georgian government says that the Anaklia Development Consortium (ADC) has the right to start arbitration but that the government is not going to renew the agreement with the ADC to build the Anaklia Deep Sea Port.
The Anaklia Development Consortium has not fulfilled the obligations it had based on the agreement with the government...and the government had no other way out but to cancel the agreement,” said Minister of Economy Natia Turnava earlier today.
Turnava noted that the construction of the Anaklia Deep Sea Port is still a priority for the Georgian government and they welcome European or American investors to get involved in the project.
We are preparing a new tender. We want this tender to be at a very high level, so we want the consultants of the international financial institutions to be involved in it,” said Turnava.
Turnava noted that negotiations are underway with the European Bank for Reconstruction and Development (EBRD). She also noted that the government might talk to the World Bank and International Finance Corporation (IFC) and other financial institutions that have experience helping countries hold a tender to attract investors.
Regrettably the government of Georgia has not yet engaged in any meaningful way in discussions with ADC and has not taken any constructive steps to avoid arbitration”, Anaklia Development Consortium said on February 12 adding that, therefore, it “will be left with no choice but to arbitrate its dispute with the government of Georgia.”
The Government of Georgia canceled the agreement with the Anaklia Development Consortium to build the Anaklia Deep Sea Port on January 9, 2020.
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.
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.