Page 59 - GEORptNov19

Conti International, which decided earlier this year to pull out of the project. Conti confirmed recently that it was still actively seeking an investor to pass its participation in the project, although the deadline agreed with ADC for such a swap expires at the end of October.
On October 28, a representative of Meridian addressed a letter to the Ministry of Regional Development and Infrastructure confirming that at this stage it does not have the capacity to invest in the Anaklia project.
US-based Conti International, a member of The Conti Group, has confirmed that it continues to seek a buyer for its 42% stake in the Anaklia Development Consortium (ADC) with a view to making an “orderly exit” from Georgia’s flagship deep-water port project, it said in​ ​a press release​ ​on October 25.
“[C]ontrary to media reports, Conti’s position remains unchanged. Conti will continue to pursue the sale of its position in the Anaklia Port Project and exit the Consortium in a manner that is constructive and supportive of the Project achieving completion,” the release read.
The Conti Group put out the release after ADC issued a statement which said Conti International had “reversed” its decision to leave the consortium. That decision was announced by Conti as far back as August 15.
"Due to high public interest, the Anaklia Development Consortium is releasing information today [October 25] that Conti International has reversed its decision to abandon the project and therefore remain a shareholder in Anaklia's deep-sea port," the ADC​ ​release​ ​issued on Facebook stated.
Levan Akhvlediani, head of ADC,​ ​insisted​ ​even after Conti’s statement of rebuttal that “the sale of [Conti’s] shares is not on the agenda at this time”. "The facts are the same. Conti remains a shareholder. No other kind of transition is on the agenda,” he added.
Akhvlediani said the Conti exit was to be completed in October, but it did not happen, and the sale of its ADC shares was not on the agenda at this time. The statements not only contradicted Conti’s outlined position, but information on ADC already having accepted Royal Van Oord of the Netherlands as a new partner.
Royal Van Oord recently became the owner of a 4.16% stake in ADC, Georgia Today​ ​reported​ ​on October 24.
Georgia’s government has given ADC until the end of the year to find strategic investors to replace Conti, while it must also secure $400mn of financing if it is to obtain permission to go ahead with the project.
The Ministry of Regional Development and Infrastructure confirmed on October 21 that the government allowed ADC to sell shares to Van Oord.
An agreement to build a 9-km tunnel on the Kvesheti-Kobi highway section was on September 5 signed by the Georgian Ministry of Infrastructure and Chinese company China Railway Tunnel Group (CRTG).​ The tunnel will cost $306mn (€278mn), accounting for more than half of the $559mn cost of the road section.
Construction is to be financed by the Asian Development Bank ($415mn) and the European Bank for Reconstruction and Development, or EBRD ($60mn). The rest will be financed by the government.
Work is to start at the end of this year, with a completion target in 2023.
The Kvesheti-Kobi highway section is part of the North-South Road Corridor, connecting Georgia with its northern and southern neighbours.
The road passes through difficult terrain and is often closed due to heavy snowfall in the winter.
The project is part of a large-scale plan. Officials aim to use it to help improve
59​ GEORGIA Country Report​ November 2019 ​ ​www.intellinews.com