Page 50 - GEORptJun20

entire licensed area) to the State, which gives the State right to terminate the contract,” the press release issued by GOGC said.
The company also said that the tribunal upheld an appeal against the claims of Frontera and terminated the arbitration proceedings on the issues raised.
The decision of tribunal is final, GOGC stated.
The decision to initiate the dispute was made after numerous attempts by the state agency and corporation to resolve it failed. Frontera repeatedly rejected the proposal to end the dispute through mediation, the press release from GOGC added.
Frontera’s activities in Georgia have for years been dogged by controversy, including accusations that it was not paying workers, OC media said in​ a​ comment piece​ ​on the case.
9.1.2​ Transport sector news
EBRD extends €75mn loan for modernisation of Tbilisi subway
The European Bank for Reconstruction and Development (EBRD) has extended a €75mn sovereign loan to Georgia for the modernisation of the subway network in Tbilisi and the provision of new rolling stock.
Of the total loan, €65mn is to be provided by the EBRD with the rest coming from the Green Climate Fund (GCF).
The funds, extended to Georgia and on-lent to the city of Tbilisi for the benefit of the Tbilisi Transport Company, will finance the acquisition of 40 modern metro cars as well as the modernisation of a depot and a tunnel.
The investment is part of EBRD Green Cities and a follow-on investment under Tbilisi’s Green City Action Plan (GCAP), which identifies areas for urgent action addressing the city’s main environmental challenges, one of which is air quality. The project is the first initiative to be co-financed by the GCF under EBRD Green Cities.
9.1.3​ Aviation sector news
The Georgian Foreign Ministry has ​turned down​ Russia’s offer to allow Georgia to carry out reconnaissance flights along the boundaries of the occupied Abkhazia and South Ossetia regions in accordance with the Open Skies Treaty, dubbing the invitation as “cynical“ and accusing Russia of trying to exploit the agreement “for political gain.”
Russia is ready to allow observation flights relating to the Open Skies Treaty in the 10-kilometre strip “along the Caucasus border” if Georgia permits Russia to fly over its territory, the Russian Foreign Ministry announced on May 26, according to RIA Novosti.
“Over the years, Russia has been systematically violating the provisions of the Treaty and politicising it. Russia has been making fruitless efforts since 2010 to use the agreement as a tool to legitimise the illegal recognition of Georgia's occupied territories,” the Georgian Foreign Ministry said in a press release.
It reminded that Russia, in 2010, banned the observation flights in the vicinity of the occupied regions on the grounds that they were independent states not subject to the Treaty.
Georgian officials also reminded that in 2012 Tbilisi suspended the implementation of the Open Skies agreement with Russia. The Georgian side does not accept Russian flights, nor does it conduct surveillance flights on Russian territory. Georgia said it has been pursuing a consistent policy throughout the years and the 2012 decision remains in force.
Georgia decided to halt flights to and from its airports, with very limited
50​ GEORGIA Country Report ​June 2020 ​ ​www.intellinews.com