Government Terminates Contract with Anaklia Development Consortium

Georgian Ministry of Regional Development and Infrastructure has released a special statement regarding the contract agreement with Anaklia Development Consortium.

The Government of Georgia has taken a decision to start procedures for terminating the agreement that the Government of Georgia and Anaklia Development Consortium signed on October 3, 2016 on Construction, Operation and Transmission of Anaklia Deepwater Seaport.

As for December 31,2019, Anaklia Development Consortium has failed fulfilling obligations under article 7 of the investment agreement, including failed attracting 120 million USD to replenish its own capital, failed submitting an agreement on allocation of 400 million USD loan from international banks, with operators of the first phase terminal and contractors of the construction works of the first phase. As a result, the Government of Georgia was made to unconditionally terminate the agreement.

The Government of Georgia has showed unprecedented efforts to promote the project. The timeframes for fulfilling the project implementation requirements and obligations were postponed several times since 2017, but the consortium has broken all schedules, failed making any progress and failed submitting real action plan or view for fulfillment of the assumed obligations. Further protraction of the contract agreement with the Consortium may damage the Anaklia Deepwater Seaport construction project. Therefore, the Government of Georgia has taken a decision to launch procedures for legal termination of the investment agreement and preparing new tender proposal for the project implementation.