Home / Business / Government Refrains from Unveiling Details about POTI FIZ Deal
Government Refrains from Unveiling Details about POTI FIZ Deal

Government Refrains from Unveiling Details about POTI FIZ Deal

Government of Georgia does not unveil details of the agreement with RAS Al Khaimah Investment Authority, under which a 85% stake in Poti free industrial zone has been transmitted to Authorities of Georgia.

The Ministry does not know whether the state-owned stake in FIZ will be sold. Ministry of Economy of Georgia has answered questions of the GBC news agency:

  1. Why LLC RAS Al Khaimah Investment Authority Georgia has withdrawn from FIZ?

Answer: We would like to specify the information that the FIZ was managed by RAS Al Khaimah Investment Authority and LLC RAS Al Khaimah Investment Authority Georgia is its subsidiary.

It should be also noted that RAS Al Khaimah Investment Authority has not withdrawn from the FIZ completely. The company maintains a 15% ratio in RAKIA Georgia Free Industrial Zone.

As to transmission of the 85% stake to the Government, the investor has taken decision itself in exchange for pardoning the fine that had been imposed on LLC RAS Al Khaimah Investment Authority Georgia.

  1. Which obligations has the investor failed and why was the investor fined? What amount of fine has been written off from the company in exchange?

Answer: LLC RAS Al Khaimah Investment Authority Georgia has not fulfilled obligations assumed under the agreement that was signed on May 25, 2010 by Poti City Hall (assignee – LEPL National Agency of State Property of Ministry of Economy and Sustainable Development) and LLC RAS Al Khaimah Investment Authority Georgia and the agreement signed on September 16, 2011 by LLC RAS Al Khaimah Investment Authority Georgia and LLC RAKIA Georgia Free Industrial Zone and Ministry of Economy and Sustainable Development of Georgia.

As to the fine amount and other details, this information is confidential, as required by the agreement, and this information may be divulged only by the company consent.

  1. What are the Government’s plans in relation to the 85% stake in the FIZ? How does the government plan to develop it? Does the government intent to find a new investor?

Answer: It is very important that we have maintained the status of a free industrial zone and the FIZ is being developed. We repeat that the investor has not withdrawn from FIZ and it still maintains a 15% stake.

  1. According to certain information, RAKIA plans to sell other assets in Georgia too. Do you have such information and why investors find Georgia less attractive?

Answer: We do not agree with the question idea as if Georgia had become unattractive country for investors. Georgia’s international positions in ratings, government’s economic policy, the existing liberal environment and official statistics prove that Georgia is a special country in terms of investment attractiveness. As to question about plans to alienation of the private company assets, this issue is beyond competency of the Ministry.

  1. What are the government plans concerning the Poti airport construction?

Answer: JSC Poti Airport was recently returned to the Government. Consequently, the government’s position will be unveiled later.