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Georgia to Construct New Oil Refinery in Poti

Ministry of Economy of Georgia has announced a tender for the design of building an oil refinery in the Black Sea town of Poti – deadline for applications expires on 10 February 2015.

According to Economy Minister George Kvirikashvili, the country is totally dependent on imported fuel, as there are no facilities for the production of petroleum products. Construction of a plant is associated with an increase in demand at both local and regional levels.

Especially considering Georgia’s  location  near the oil-producing countries that will enable the successful operation of the enterprise” – the Minister notes.

According to preliminary information,  it is about the  construction of a modern enterprise, which will process at least 2 million tons of oil per year. It is expected that the plant will be built by 2017, not later than 2018 it should already be started.

The company will produce fuel  of standard Euro-5, and it is expected that these products will take 20% of the fuel market in Georgia.

Moreover, the production of oil in the country will reduce fuel cost by 10%.The term of the license of the enterprise will be 25 years.
One of the conditions for investors is the employment of local residents – the agreement will provide that 90% of employees at the plant will be citizens of Georgia.

Before signing the contract the investor will be required to submit a bank guarantee in the amount of USD 20 million. A winner of a tender will be required to bring their own finances for the project, and after the construction of the plant to purchase crude oil for the enterprise.