MPs meet the Executive Director of “Anaklia Development Consortium”

Levan Akhvlediani, Executive Director of the “Anaklia Development Consortium” met with MPs in the Parliament on October 30. The initiators, independent MPs Levan Koberidze, Levan Gogichaishvili, and Koba Narchemashvili invited Maia Tskitishvili, Minister of Regional Development and Infrastructure along with Akhvlediani to attend the meeting. Levan Akhvlediani attended the meeting, but Maya Tskitishvili was not present, claiming having no problem with the form of dialogue, but no will to “take part in the performance.”

Akhvlediani started by presenting the commercial opportunities of the port and the new free economic zone. He thinks the commercial basis of the port will increase container shipments in the future. Akhvlediani noted that as a result of the deep-sea port operation, Georgia will be able to receive much larger vessels, and the port, designed to meet modern requirements, will be able to significantly reduce the cost of container shipping. According to the “Anaklia Development Consortium” estimates, the port can reduce shipping costs by up to $ 250 on average, saving the economy $ 140 million annually.

In his speech, Akhvlediani also touched upon the factor of Russia:

“I say with full responsibility that such port can be built no other place except for Anaklia. We will be able to receive the biggest ships ... As we speak, Russia is gearing up to build a new deep-sea port in its waterfront," stated Akhvlediani.

He also discussed three issues that hinder the construction of the deep-sea port:

“All investors are asking for government support, which is not the case; “SSA Marine” asks the government not to compete with another deep-sea port until Anaklia reaches 70 percent utilization; Banks demand a guarantee of partial repayment of the loan. It does not serve commercial risk insurance for Anaklia investors. We believe that as a result of solving these three issues, the project will be implemented. Unfortunately, so far, the government has not been able to engage in meaningful negotiations," noted Akhvlediani.

He also added that the Georgian government needs to be more constructive:

“The deadline imposed on us is completely inadequate. Generally speaking, the term is unconstructive. Negotiations should at least start to resolve the issues that are at this stage. I repeat once again, we are talking about the demands that banks, operators, and investors have put in place,” he said.

The director of the “Anaklia Development Consortium” also touched on one of the investors “Meridian Capital” who left the project. Levan Akhvlediani tried to assure the audience that “Meridian Capital” has a strong interest in Anaklia Port Project, and is fully aware of the challenges the project faces:

"Unfortunately, Meridian Capital has withdrawn its interest, but I think this is formal. What Minister Tskitishvili said is correct, it is the official version that they cannot participate, but I am deeply convinced that this is not the case. They have a very strong interest in the project. They spent a great deal of time studying it. They are fully aware of the challenges that this project faces. All required documents were submitted to obtain a permit. I think if the government declares their support, I am sure “Meridian” will turn around. I think more needs to be done to not lose such investors,” said Akhvlediani.

The Ministry of Regional Development and Infrastructure released a statement on October 29, stating that “Meridian Capital” NL B.V had confirmed that it had no investment in the Anaklia Port Project at that stage.

On October 15, the government extended the contract for “Anaklia Development Consortium” until the end of the year, when the consortium should submit project financing agreements to investors, as well as a document on full capitalization. The consortium states that in recent months and weeks "the government has practically sabotaged this project."