AMID speculation that the construction of the giant seaport in Anaklia may be in jeopardy, the former general contractor intends to launch a legal action to protect its investments, while the Georgian government plans to carefully select a new investor.
'The Georgian government terminated the contract with Anaklia Development Consortium [ADC] on the construction of the Anaklia seaport on the Black Sea coast for some US$2.5 billion,' Georgian Minister of Infrastructure Maya Tskitishvili said during a press conference.
The government has started preparing a new tender to replace the general contractor on the project, reported Oakland's IHS Markit Dredging and Port Construction.
ADC said it was going to appeal to the International Court of Justice in response to the Georgian government's cancellation of the investment agreement with the consortium on the Anaklia deep seaport. ADC general director Levan Akhvlediani said that the consortium had invested US$75 million in the project and fully fulfilled its obligation.
Mr Akhvlediani blamed some top government officials and lawmakers 'fighting on purpose' in order to undermine the port construction project.
ADC began construction in December 2017. In July 2018, ADC commenced a major dredging operation to deepen the port's bottom. Last August, New Jersey-based Conti International LLC pulled out from ADC, leaving the consortium without its main investor.
The court hearings could last for years and, under some circumstances, could even hamper the progress of the project, Mamuka Kipshidze, a Tbilisi-based lawyer, warned.
In addition, Ms Tskitishvili said that the government would not allow all interested parties to participate in the project.
'For us, the priority is to have a western partner in this project. It's also advisable to have a US investor, which would become a basis of not only the economic success of this project, but also fully engage a security component. So, we would welcome American and western investors,' said Ms Tskitishvili.
Anaklia deep seaport has the potential to ramp up Georgian transit potential and become an important element of a new Silk Road between Asia and Europe. Currently, the biggest seaport in Georgia in the city of Poti cannot accept ships of 1,500 TEU and above, whereas Anaklia port is expected to attract ships of 10,000 TEU.
WORLD SHIPPING
'The Georgian government terminated the contract with Anaklia Development Consortium [ADC] on the construction of the Anaklia seaport on the Black Sea coast for some US$2.5 billion,' Georgian Minister of Infrastructure Maya Tskitishvili said during a press conference.
The government has started preparing a new tender to replace the general contractor on the project, reported Oakland's IHS Markit Dredging and Port Construction.
ADC said it was going to appeal to the International Court of Justice in response to the Georgian government's cancellation of the investment agreement with the consortium on the Anaklia deep seaport. ADC general director Levan Akhvlediani said that the consortium had invested US$75 million in the project and fully fulfilled its obligation.
Mr Akhvlediani blamed some top government officials and lawmakers 'fighting on purpose' in order to undermine the port construction project.
ADC began construction in December 2017. In July 2018, ADC commenced a major dredging operation to deepen the port's bottom. Last August, New Jersey-based Conti International LLC pulled out from ADC, leaving the consortium without its main investor.
The court hearings could last for years and, under some circumstances, could even hamper the progress of the project, Mamuka Kipshidze, a Tbilisi-based lawyer, warned.
In addition, Ms Tskitishvili said that the government would not allow all interested parties to participate in the project.
'For us, the priority is to have a western partner in this project. It's also advisable to have a US investor, which would become a basis of not only the economic success of this project, but also fully engage a security component. So, we would welcome American and western investors,' said Ms Tskitishvili.
Anaklia deep seaport has the potential to ramp up Georgian transit potential and become an important element of a new Silk Road between Asia and Europe. Currently, the biggest seaport in Georgia in the city of Poti cannot accept ships of 1,500 TEU and above, whereas Anaklia port is expected to attract ships of 10,000 TEU.
WORLD SHIPPING