Ministry of Regional Development and Infrastructure refuses to terminate contract with Anaklia Construction

The Ministry of Regional Development and Infrastructure of Georgia released a statement regarding the Anaklia project.

According to the statement, "Although the Consortium has partly failed to fulfill its obligation regarding the capital filling, while the obligation related to the agreement with banks has not been fulfilled at all, which gives the Georgian Government the right to terminate the agreement immediately, the Georgian Government considers the importance of the Anaklia Port Construction Project and refuses to exercise its right to terminate the contract”.

“The Ministry of Regional Development and Infrastructure of Georgia has always considered the high public interest in the Anaklia Deep Sea Port Project and timely provides the public with objective information on the progress of the project.

Since yesterday, on 15 October, the term for fulfilling the interim liabilities by the Anaklia Development Consortium has expired without any result achieved, we would like to inform the society of the decision of the Government of Georgia, as one of the parties to the investment agreement.

Although the Consortium has partly failed to fulfill its obligation regarding the capital filling, while the obligation related to the agreement with banks has not been fulfilled at all, which gives the Georgian Government the right to terminate the agreement immediately, the Georgian Government considers the importance of the Anaklia Port Construction Project and refuses to exercise its right to terminate the contract.

The Government of Georgia is giving the Consortium the opportunity to fully utilize the resources at its disposal and raise its own capital and reach an agreement with international banks in writing until the end of 2019 for the completion of the port construction project”, reads the statement.

According to the statement, the deadline for fulfillment of all obligations under the investment agreement signed between the Government of Georgia and the Anaklia Consortium has been postponed several times by the Government of Georgia since 2017.

The Ministry expresses hope that the continued support by the Georgian Government to the project will be fruitful and that the Consortium will be able to properly fulfill its obligations under the contract.

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