Government of Georgia has decided to terminate the contract with Anaklia Development Consortium (ADC) on the deep-sea port construction signed on 03 October 2016.
As on 31 December 2019, ADC never managed to attract investors for the construction and meet the 7 commitments undertaken.
In particular, ADC failed to enlarge its capital by 120M USD, and to draw foreign investments necessary for the start of building works – the $400M credit is spoken about, required for the project’s first phase realisation.
“The state rendered unprecedented support to the consortium and decided several times to prolong the contract term. Government also extended terms of main obligations fulfilment by ADC, but never managed to meet even those terms, and failed to submit an actual plan of actions.
Considering the fact that since 2017 until now ADC haven’t fulfilled its main obligations, nor presented any vision of the project development, nor found investors, Government of Georgia cannot think it possible to further prolong the contract.
Further protraction of contract relationship with the consortium might cause considerable harm to the port construction project, therefore Government is starting legal proceedings towards the existing contract’s termination and preparation of the new tender on port construction”, announced Minister of Infrastructure of Georgia Maya Tskitishvili.
As per ADC Director Levan Akhvlediani, the company in no way agrees to the governmental decision to discontinue the contract on deep-sea port construction in Anaklia. Accordingly, the company decides to bring the legal action in arbitration court against Government of Georgia.
“Bearing in mind the stance of Government, have we nothing to do but file the suit in arbitration court. Now we are working on legal procedures after which starting to sue.
Unfortunately, Government of Georgia failed to do every possible effort to implement this paramount project that is capable of making a breakthrough in the country’s economical development.
The state failed to attempt even tiniest steps to support the venture, and even didn’t bother to consider our recommendations towards promoting the project realisation. All this obviously challenges the project’s fate which is vital for the country. As a result, both the very project and the country as a whole lose”, declared the consortium’s head.
https://commersant.ge/ru/post/pravitelstvo-gruzii-razrivaet-kontrakt-s-konsorciumom-razvitiia-anaklia
https://commersant.ge/ru/post/konsorcium-razvitiia-anaklia-idet-v-sud