Georgian Gov’t wins $26 mln in highway construction arbitration dispute - Infrastructure Minister

Georgian Infrastructure Minister Irakli Karseladze on Monday said the Government had won ₾70 million ($26mln) in French international arbitration against an Italian construction company that had been contracted for work on a part of the Samtredia-Grigoleti section of the E-60 East-West Highway across the country.

Karseladze made the comment while rejecting “false” claims by the domestic opposition that said the company’s bid had been rejected due to a drilling methodology to be used in the works. 

He said the tender documents had indicated use of the NATM method of drilling, and added its use had “never become an issue of discussions” during the process of the bid’s submission.

He said the agreement with the company had been terminated in 2018 due to “non-fulfilment of obligations”, noting Georgia’s Roads Department had won an international arbitration case as part of the dispute.

The Minister added a dispute for an additional ₾30 million ($11mln) in compensation was ongoing as part of the process.

Karseladze also accused the domestic opposition of attempts to “instil fear” about the safety of the construction works and pledged to “strengthen communication” with the public around the topic.