Economy Ministry: Chinese-Singaporean consortium involved in Anaklia port project not Subject to int’l, US sanctions

The Ministry of Economy of Georgia on Thursday said the Chinese-Singaporean consortium participating in the construction of the Anaklia port in the country’s north-west was not subject to international or United States sanctions. An artist impression. Image: Ministry of Economy

Agenda.ge, 30 May 2024 - 18:07, Tbilisi,Georgia

The Ministry of Economy of Georgia on Thursday said the Chinese-Singaporean consortium participating in the construction of the Anaklia port in the country’s north-west was not subject to international or United States sanctions.

The body was commenting after the Government announced the selection of China Communications Construction Company Limited for the major project, against criticisms by some of the domestic opposition groups.

In its response, the Ministry claimed a “purely political campaign” against the consortium and said it aimed to “obstruct” the project.

China Communications Construction Company Limited is the leading member of the consortium which has submitted a proposal for the Anaklia port project. Details of the proposal will be disclosed soon, and negotiations for the partnership and concession agreements will commence thereafter”, the body said.

It also said CCCC was the “largest Chinese company” that engaged in construction projects “for roads, ports, hotels, energy, metallurgy, transport and logistics”, while the second member of the consortium, China Harbor Investment LTD, was a state-owned company registered in Singapore that specialised in port operations and infrastructure projects.

The Ministry said one of the subcontractors, China Road and Bridge Corporation, had been “actively involved in major infrastructure projects” in Georgia since 2018, particularly in the construction of “ports, roads, bridges and navigation channels” after winning tenders announced with financing of the European Investment Bank and the World Bank.

Qingdao Port International Co., Ltd, another subcontractor for the project, manages “the five largest Chinese ports and operates 86 berths, including container, metal, coal and oil terminals”, it added.

This is a brief summary of the partner consortium that will build and develop the Anaklia deep sea water port with the state. Regarding the information circulated by certain political entities claiming that the Government is entering into a contract with a consortium whose leading or subcontracting companies are sanctioned by international financial institutions, we want to clarify once again that during the application and review process for the project, the proposing company is not included in the list of entities sanctioned by international financial institutions”, the Ministry said.

At the time of the application and study stage of the Anaklia port project, the proposing company has not been not included in the list of entities sanctioned by international financial institutions”, it added.

The body clarified the US Department of Commerce had placed the company and several of its subsidiaries on its Entity List in 2020, with regulations of the Export Administration requiring licences from American companies to allow certain types of transactions with the companies on the List.

This restriction applies to specific transactions and does not block assets or limit financial transactions with CCCC and its subsidiaries, unless they involve exports, re-exports, or technology transfers. Moreover, the restrictions do not prevent others from purchasing services or goods from CCCC and its affiliates”, the Ministry said.

Georgian Prime Minister Irakli Kobakhidze emphasised the significance of involving the Chinese company in the implementation of the port project earlier today, adding freight from the country would play a “crucial role” in the “efficient operation” of the port.