Port consortium renews development bid

The Anaklia Development Consortium (ADC) has released a statement which highlights the work it has already carried out on the state-owned Anaklia deep-sea port development in Georgia and supports its continuation.

Speaking about the contribution the project could make to Georgia’s economy, ADC said: “Fortunately, through the work it has already carried out, the Anaklia Development Consortium (ADC) is the right partner with the government to achieve this shared vision, ready to restart work promptly.”

In January, the Georgian government announced it was looking for a new investor for the construction of the Anaklia deep-sea port after the ADC contract was cancelled.

The ADC ran into problems with financing the project when banks wanted state guarantees that the Georgian government would repay their loans if the project failed. The consortium was also expected to sign a contract with construction contractors but failed to do so , according to the government.

On this issue, ADC stated: “While the project is currently stalled by a dispute with the Government, ADC has temporarily paused with filing an arbitration claim against the Government as Georgia responds to the Covid-19 public health crisis.

“At the same time, ADC has voiced its willingness to avoid the arbitration so that the dispute does not further delay this strategic infrastructure project, and work cooperatively with the Government to attract additional investors and continue with the work that has already commenced.”

The consortium laid out the benefits of continuing development including foreign investment already secured and employment opportunities. It added that ownership of the Port of Anaklia will transfer to the Government at the conclusion of the concession period, which offers further direct revenue.

ADC pointed out that since signing the investment agreement in 2016, progress has included the signing of cooperation agreements with ports in Azerbaijan, Kazakhstan and Turkmenistan; the signing of mandate letters with four international financial institutions for debt funding of US$400m; the securing of European construction company Eiffage as the general construction contractor; the appointment of SSA Marine as terminal operator; and the selection of China’s ZPMC to supply electrified rubber tired gantry (eRTG) cranes, and South Korea’s Hyundai Samho Heavy Industries Co., Ltd to provide Ship to Shore (STS) container cranes.

The consortium stated that site development work has already commenced , with dredging work carried out by Van Oord Dredging and Marine Contractors BV. Drainage systems have also been installed. Altogether, site development work has also included construction of a 2.5km irrigation channel and inner roads, transfer of existing communications lines, geodetic surveying and waste removal.

ADC added that it has also been progressing toward development of the Anaklia City Special Economic Zone, including considerable interest expressed by Japanese investors in relation to both projects.

It warned: “To abandon these strategic opportunities would be a severe setback for Georgia.”