C.T. Park Releases Statement Regarding Abolished Contract with Tbilisi City Hall

Parking regulatory company C.T. Park owners have released a statement regarding the recent decision of Tbilisi Mayor Kakha Kaladze to terminate the contract with the company.

The statement reads that Kaladze’s decision is “illegal and politically motivated.” The owners of the company claim the step of City Hall is an example of how the Georgian Government treats foreign investors.

“The entire state apparatus, including various branches of Government, have been used in a well-coordinated, concerted effort to unlawfully drive C.T. Park out of Georgia. The authorities have acted in bad faith and disregarded continuous communications from the investor as well as the fact that there are two pending court cases whereby C.T. Park challenges the absurd allegations that it has violated Georgian law,” the statement reads.

The company says they will address the court and also consider all options and remedies available under Georgian and international law.

“C.T. Park owners will also bring this information to the attention of Israel, as well as the international business community. This will no doubt reflect negatively on the Georgian investment climate, which apparently does not concern powerful bureaucrats acting in self-interest,” says the statement.

Tbilisi Mayor announced the abolishment of the contract with C.T. Park on Tuesday, saying the company is failing to fulfill its obligations.

Kaladze said the agreement with the company will be abolished from April 10.

The contract between the City Park Company and the Mayor’s Office was signed under the previous Government in 2007, giving the company exclusive rights to manage parking services in Tbilisi until 2022.

According to the international auditing company Ernst & Young, the annulment of the agreement will cost the Mayor’s office 25 million GEL in expenses, a huge sum for Tbilisi's budget.

However, as media reports, the court will decide the final penalty City Hall will have to pay to break the contract.

By Thea Morrison

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Tbilisi City Hall to Abolish Contract with C.T. Park

14 March 2018 13:41