With regard to the contract signed with the Anaklia Development Consortium, the Georgian government decided to launch procedures for cancelling the investment contract signed between the Consortium and the Government on 3 October 2016 on the construction, operation and transfer of a deep-see port in Anaklia. Such a statement was spread by the Ministry of Regional Development and Infrastructure.

According to the Ministry, the Government considers that a further extension of a term for the implementation of duties cannot bring the desired result.

“As of December 31, 2019, the Anaklia Development Consortium, which had gained the right to build Anaklia’s deep-sea port, failed to comply with the obligations under a 7-point investment agreement. Inter alia, it failed to obtain 120 million USD for filling its capital, failed to submit a 400 million USD loan agreement with international banks, or contracts with the first phase terminal operator or the first phase construction contractor, thereby giving the Government full and unconditional right to cancel the contract.

Although the State showed unprecedented support to the investor for the project and extended the term for the implementation of basic and necessary obligations several times since 2017 after the above was requested by the Consortium, they failed to meet the deadline, did not make significant progress and failed to present a real action plan for the fulfilment of duties”, - reads the statement.

According to the Ministry, since the delay in contractual relations with the Consortium could harm the port construction project, the Government will launch procedures for canceling the contract with the Consortium, as well as for further development of the Anaklia port project.