Home
Category
TV Live Menu

• ახალი ამბები ბიზნესში •

Loading data...

Anaklia Development Consortium: TV Imedi coverage included incorrect and unverified information

5c9132b362ede
BM.GE
19.03.19 22:12
854
The Anaklia Development Consortium responds to the Imedis Kvira coverage of Anaklia Port development aired on March 17, which included incorrect and unverified information regarding the process of construction, its current stage and related topics.

Construction and the Ongoing Works

The Anaklia Development Consortium once again states that from 2016 to this date, after the Investment Agreement was signed with the Government of Georgia, the Consortium has not breached any construction deadlines. Moreover, before financial closing in 2018, its shareholders had started construction works at their own expenses. As of now, the Consortium has invested 70 million USD into the Project.

Current status of construction: In 2018, the world’ largest dredger carried out water deepening works in the Anaklia Port, dredging 5 million m3 of sediment (sand and gravel). Settlement of the recovered sediment in the adjacent marshland is underway, so that ground density and compaction reaches 95% to bear solid infrastructure. The process started in December and requires about 6 months.

At the same time, the company is actively engaged in other directions as well. The winner of the international tender on container crane supply will be identified in several days; General Contractor bid will soon be completed. The Consortium has started Anaklia Economic Development Program in partnership with the USAID and opened a training centre. The process of issuing grants has started.

Financial Closing and Changes in the Agreement

The Anaklia Development Consortium succeeded in attracting 620 million USD for Phase One of the construction and continues to cooperate with 4 international financial institutions: EBRD (European Bank for Reconstruction and Development), OPIC (Overseas Private Investment Corporation), ADB (Asian Development Bank) and AIIB (Asian Infrastructure Investment Bank). They have studied the project, signed the mandate and currently, the final state of negotiations is underway. Financial closing of Phase One was deferred twice due to project complexity of the project and other objective reasons.
Furthermore, changes were made to the 600-page investment agreement at different times, which became necessary due to objective factors related to the project. Each time, they were heard, discussed and approved by the Government.

We also find important to quote several numbers:

Part of the changes introduced into the Investment Agreement during the Consortium’s cooperation with the Government was beneficial for the Consortium, while rest of the changes were required by the Government and served its interests.

13 provisions in all were introduced into the Agreement by and in favour of the Government, including a clause on deferment, which the Government required in connection with various processes. 16 provisions in the form of amendments were introduced into the Agreement in favour of the Consortium.

At the same time, we categorically deny the information that during the implementation of the changes, the Government waived 11 million USD penalty payable by the Consortium. No such penalties have been incurred by the Consortium.

Insuring against risks

The public is aware that the international banks require freight turnover risk insurance from the Government as a way of guarantee. This issue was raised by the IFIs almost a year ago – upon the signing of the mandate.

The above-mentioned international banks have been investing in Georgia for many years under various projects. They have successfully funded and implemented projects all over the world. The high reputation of these institutions underscores the legitimacy of their requirements.

Let us remind you that freight turnover does not depend solely on the Port. In the long run, it will depend on the country’s macroeconomic growth or the political situation. There are factors that can only be insured/ guaranteed by the Government. It needs to be mentioned here that the shareholders undertake the main risk and the Government’s guarantee is only required by the IFIs and for the loan they allocate.

Interests

We would also like to remind you how the ongoing concerns around the Anaklia project have started: Georgia’s Chief Prosecutor made a public statement regarding financial allegations against the businessmen, Mamuka Khazaradze and Badri Japaridze, who are also the Anaklia Development Consortium shareholders. The Government’s actions raised most natural questions among the funding institutions. The fuss around the project was started by the Government and this has interfered with the project’s progress. Furthermore, the Government disclosed the details of negotiations with the Consortium. Successful continuation of negotiations with the IFIs is, first of all, in our interests.

Project development

As we all may know, at present, it is vital for the country’s economy to continue deep-water port construction. The forecasts show that freight turnover and demand on container shipping will remarkably increase by 2020. However, the new opportunities will bypass us and find way to the north and elsewhere, unless we have a deep-water port by that time.

If the Anaklia port construction is hindered, the above-mentioned threat will come to fruition. Also, if the Anaklia Development Consortium’s involvement in Anaklia port development is prevented, the construction of a deep-water port will be delayed for many years, if not discontinued.

Besides, we find it inappropriate to complete the project with state budget allocations only and continue the works without the Consortium’s involvement – especially now that the Consortium has fully attracted 620 million USD necessary for Phase One and only one final step remains to complete the process.

Shareholders

Along with TBC Holding, the project shareholders are local and international companies: Konti Group, which invests 5.2 million USD and SSA Marine, which is the strategic investor of the project, with 20 million USD investment.

SSA Marine is one of the world’s leading companies engaged in cargo handling and terminal operation, with more than 250 strategic locations. It is a subsidiary of Carrix, whose local (US) projects are implemented by SSA Marine and international projects (across five continents) by SSA International. In compliance with international practices, SSA Marine will set up a local company in Georgia, as it does in other locations. SSA Marine will allocate 25 million USD corporate guarantee to secure its operating liabilities.