The Anaklia Development Consortium (ADC) issued the following statement on the occasion of the third anniversary of the Georgian Government’s termination of its investment agreement with ADC.
On this date three years ago, the Georgian Government wrongfully terminated the investment agreement with the Anaklia Development Consortium to develop a new deep water port at Anaklia. That Port would have transformed Georgia and its economy. Over the past three years since the wrongful termination, all the Government has done is make empty promises about its purported commitment to Anaklia.
The last three years have only brought stalling, deception and outright falsifications by the Georgian Government with respect to Anaklia, along with its ongoing politically-motivated campaign to destroy the reputation and legal standing of the project’s primary Georgian sponsors, Mamuka Khazaradze and Badri Japaridze. There have been five Prime Ministers during the period since the tender was awarded to ADC, all of which belong to the ruling Georgian Dream party and all of which have served at the pleasure of Bidzina Ivanishvili.
Had the Anaklia project proceeded under its original schedule, Phase 1 of the port would now be operating, with the capacity of up to 900,000 20-foot cargo containers (TEUs) and dry bulk cargo capacity of 1.5 million tons (far larger than the current capacity of Poti Port). The economic benefit to Georgia would have been enormous, and trade could move between Asia and Europe efficiently and outside of Russian influence.
This is particularly important given the developments of the past year, where the Russian invasion of Ukraine has made the concept of the “Middle Corridor” that much more imperative for trade between Asia and Europe.
It is important to note that ADC has acted in good faith throughout this three-year period, including temporarily postponing its arbitration claim during the initial period of the Covid pandemic, and making countless efforts during this time to engage with the government to seek ways to get the project back on track and avoid the continuing arbitration, including its standing offer to help the Government find new investors and financing.
Another Anaklia-related anniversary will be recognized next month, when three years ago director of Anaklia Development Agency, David Javakhadze told Accent News that the date of a new tender on Anaklia deep sea port “will be known in about two weeks.”
Georgia has waited two weeks, then two months, and now three years and still, no tender.
The fact that we still do not have a tender, much less a viable project at Anaklia, is the clearest evidence that this Government is really talking out of both sides of its mouth when it speaks about Anaklia. It has no real wish to see Anaklia developed.
Listed below is a partial list of all the instances where the Georgian Government has made representations about a new tender for the Anaklia Project.
The common denominator of all of these promises is that none of them have come true. There is still no project, there is still no tender. There is nothing but lies to the Georgian people, to foreign investors, financial institutions, our European and US allies and the ports and transport sectors.
The irony is not lost that the Georgian Government used the pretense of missed deadlines as a reason for terminating the investment agreement with ADC, but itself has failed to follow through with all of its own promises and deadlines over the past three years.
Georgian government to announce new bidding for Anaklia port after pulling contract with investor
On 21 January, Economy Minister Natia Turnava confirmed the government was to announce a new tender to replace Anaklia Development Consortium (ADC), a group of local and international companies responsible previously for the port project…
She insisted… it was the government’s ‘priority’ to make sure it was completed…
The Ministry of Regional Development and Infrastructure of Georgia told OC Media the date for a new tender would be announced soon.
”Currently, we are working on the development of the tender,” Georgian Vice PM, Minister of Regional Development and Infrastructure Maia Tskitishvili said when commenting on the Anaklia Port construction tender announcement terms.
In Tskhitishvili’s words, the government will present a new tender document with unique conditions.
Irakli Garibashvili: Process will soon start for the selection of a new potential investor for the Anaklia Port Project; Georgian authorities had always demonstrated an unprecedented support towards the Anaklia Port Project
Georgian authorities had always demonstrated unprecedented support towards the Anaklia Port Project. It was stated by Irakli Garibashvili, Prime Minister of Georgia at the Executive Government Meeting today…
We will be launching a process to select a new potential investor in the nearest future. Respective agency subordinated to the Ministry of Economy of Georgia will be announcing a tender in line with the procedures promulgated in the law.
The tender for the deep-water port of Anaklia will be announced in the first half of 2021
According to the Minister of Economy and Sustainable Development, the Government of Georgia plans to announce a re-tender for the Anaklia deep-water port project in the first half of 2021. According to Natia Turnava, the Prime Minister instructed the ministry to quickly prepare a new tender for the port of Anaklia…
“Many things have happened both in the region and globally in view of the pandemic. We are now actively working to update the tender documentation so that we can announce the competitive selection process for investors in the first half of the year,” Natia Turnava said…
The Anaklia port project is included in the $20-25 billion investment projects planned in Georgia in 2020-25, and 1.7 billion is provided for it.
The tender for the construction of Anaklia port will be announced in a few months. An international consultant will also be involved in the process…
Prime Minister Gharibashvili also announced today that the investor selection process for Anaklia port will be activated. According to him, the government of Georgia has always expressed unprecedented support for the Anaklia port project.
The port of Anaklia is still listed in the government’s priorities. The tender terms of the port project are being updated. The government is planning to revise the Anaklia tender documentation and the port’s economic justification document will also be re-prepared.
According to the draft budget of 2021, the government plans to invest 10 million GEL in the development of the highway and railway project connecting Anaklia to the deep-water port.
Georgian government hires international consulting company to develop business model for Anaklia port
On 18 May, the Georgian government hired the international consulting company Maritime & Transport Business Solutions (MTBS) to update the freight forecast and business model for the Anaklia deep sea port project in about eight-nine weeks, reported agenda.ge.
MTBS would also develop a new marketing strategy and select the optimal model of public-private partnership as part of the contract signed today with the Anaklia Deep Sea Port Development Agency. Georgia’s Deputy Economy Minister Guram Guramishvili said that by the end of this year it would be possible to announce an expression of interest and to select a new investor for “the crucial and strategic project.”
On 4 March, Georgia’s Prime Minister Irakli Garibashvili stated that the country’s government would start the process of selecting a new potential investor for the Anaklia Deep Sea Port project in the near future.
The Georgian government continues to work on an updated investment tender package for the construction of the first deep-water port of Anaklia in the west of the country. It is planned to announce an international process for the selection of investors in 2022, according to Natia Turnava, Minister of Economy …
The government plans to announce a new tender for the Anaklia port project
The Government of Georgia plans to purchase consulting services for the preparation of a new tender for the Anaklia port project. The Anaklia Port Development Agency has already published information about simplified procurement on the website of the State Procurement Agency. The cost of purchasing consultations is 1 million GEL. In particular, the cooperation talks are with the legal firm White & Case, the Rotterdam consulting center and the company MTBS. Anaklia Development Agency cooperated with the mentioned companies in previous years. “It is advisable to continue cooperation with consultants of similar international experience, which saves the agency additional unreasonable financial resources and time, and it is also possible to sign contracts with new highly qualified/reputable international financial and/or consulting and/or legal companies, which It is one of the main prerequisites for the successful implementation of the project”, the document reads. In addition, the document mentions that “the consulting group should implement the measures stipulated by the legislation for the development of Anaklia deep-water port as soon as possible”.
13 December 2022
Multiple media reports
Remarks of PM Garibashvili
“Anaklia Port will be built with the participation of the State, whereby the State will own 51%. For the remaining part, we will announce an international tender and select partners.”
The Minister of Economy explains with what financial resources the state plans to participate in the construction of Anaklia port
“We have been working with partner consulting companies, we have selected two consulting companies from the UK and the Netherlands to work out the terms of expressions of interest and at this stage, they have been processed. The Prime Minister has already announced that the project will be implemented in the near future, and the Ministry was preparing for this, a special working group was working with consulting companies. Also, he worked on certain changes that needed to be included in the legislation of Georgia on public-private cooperation in order for it to be adequate and usable for the implementation of the project. Already in January-February, we will start selecting potential partner investors as a result of expressions of interest. As the Prime Minister announced, the role of the state will be leading in the implementation of this project…
“The funds of the project will be specified in the next stages. There are different stages in the development of Anaklia port, about three separate stages. For the first phase, we think it could cost $300 million…
“As for the sources of financing, we think that the state has the resources for this. including in terms of state enterprises and state enterprises that can participate in the co-financing of similar projects…
“In our long-term strategic projects, we think that we will use long-term savings, which can come from the same pension fund, and in combination, we will be able to mobilize these funds without any problems…
“I think that during 2023, we should move to the stage of construction works. Throughout the year, negotiations with potential partners and investors were ongoing, and there are many interested parties.”