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infrastructure project, a deepwater port on the Black Sea coast, InterPressNews.ge reported . The statement puts a large question mark over the involvement of Conti Group.
“After the tender [in 2016], Conti Group was not involved in the implementation of the project. Despite holding a 42% stake in the consortium, Conti Group has been neither involved in financing the project, in raising $120mn in consortium equity, nor in ongoing funding negotiations,” said the statement.
All of this has led to serious doubts about the Conti Group project's actual existence, especially since Conti Group president Kurt Conti officially left the consortium board on December 6, 2018, the ministry’s statement reads.
Independent analysts believe Georgia is trying to accommodate Russia's political interest. All government actions and statements show that Anaklia's deep seaport does not have government support and the consortium is being forced to quit the project, Giga Bedineishvili, an analyst for Business Media Group, commented , adding that a legitimate, internationally reputable investor would not get involved in the project under such circumstances. He said an investor might come in, but only if there were deals with former prime minister Bidzina Ivanishvili and Russian investors.
"In my opinion, the government's plan is to satisfy Russian political interest. This is very evident in the statements they make. All this is visible and understandable. It is difficult for the consortium to find a replacement for the Conti Group. An investor who has both experience and money may not find it and the government is well aware of it and that is exactly what its purpose is," said Akaki Tsomaia, an academic at Caucasus University, quoted by BMG.
Georgia has firmly set deadlines and tight terms on finding a replacement for Conti Group. After praising the good work of the consortium that has been able to meet its obligations and has submitted a draft contract for the construction of the Anaklia Deepwater Port, the ministry pointed to the October 15 deadline for agreeing the final terms of the loan agreement for the project. Financing agreements worth $520mn should as well be signed for the construction of the first phase of the port, the ministry said. Furthermore, agreements with investors involved in replenishing the equity of the consortium (after Conti’s reported withdrawal) should be dealt separately with in a timely manner.
Separately, the ministry said that Conti should be replaced by a partner with similar experience since the American partner’s experience was critical in helping the consortium win the tender.
“In addition, we would like to respond to the information about the departure of Conti Group from the founders of the Anaklia Development Consortium and remind the public about the interest expressed by the Ministry of Economy and Sustainable Development of Georgia on August 5, 2014 on the construction and operation of the Anaklia Deepwater Port. Basic and necessary conditions of tender,” it said.
“According to the terms of the tender, the Georgian government relied on the bidding company to fulfill the project, which would meet two basic requirements: It would have had at least five years of experience in the construction and management of a similar port and the financial standing required to carry out such a project.”
10 GEORGIA Country Report September 2019 www.intellinews.com