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4.3 Fixed investment
Georgia -Fixed capital 2013 2014 2015 2016 2017 2018 1Q19 2Q19 investment
Gross fixed investment capital formation (GEL mn)
3,540.5 4,260.5 3,951.7 4,358.8 4,481.7 4,764.4 893.1 1,172.9
Gross fixed capital formation (% of GDP)
24.6% 29.5% 31.3% 32.4% 31.6% 33.8% 27.6% 32.1%
Source: CEIC
Georgia extends deadline for ADC to raise financing for Anaklia deep sea port
Georgia’s government is entitled to terminate the public-private partnership contract signed with Anaklia Development Consortium (ADC) in 2016 for one of the country’s major economic projects, the flagship Anaklia deep sea port investment, which has in recent months become subject to a fierce political dispute, but it has decided to give ADC two and a half months more to meet requirements, Minister of Regional Development and Infrastructure Maia Tskitishvili said on October 15.
Those requirements are to find a replacement for US-based Conti Group that lately pulled out of the project and secure $400mn financing for the first stage of the project, “Although the treaty gives us the full right to terminate it today, we will not use this right and will allow the consortium to make use of all of its resources,” Tskitishvili told Imedi TV.
Asked what fate awaits the Anaklia port project, the minister said that the government was not going to terminate the contract with ADC and was extending the deadline to fulfil obligations by the end of the year.
"Although the contract gives us the full right to terminate it today, given that the Anaklia Development Consortium has failed to fulfil its obligation to obtain equity and prior agreement with the banks, given that this project is important to us [we are extending]. Neither the consortium nor the political opposition will be able to blame any government action that would hinder the Anaklia Development Consortium in carrying out this project,” Tskitishvili stated.
Tskitishvili also welcomed the prospective investors, which representatives of
19 GEORGIA Country Report November 2019 www.intellinews.com
