Page 60 - GEORptOct22

Chinese contractor fined for slow road construction in west Georgia
Georgia to start Anaklia deepwater port project from scratch
destinations.
“Today we are launching a unique, world-class project that is truly outstanding”, Garibashvili said, adding that the project would contribute to the growth of Batumi's “already strong” international reputation and the economic progress of Adjara.
Batumi is an important BRI seaport, assisting goods from the EU Black Sea ports in Bulgaria and Romania head east via rail connections through Azerbaijan’s Caspian Sea Port at Baku, where they can continue east to China via Kazakhstan or head south via Iran and the INSTC to the Middle East and beyond.
The founder of the project and the investor is Moscow-born Georgian entrepreneur Tornike Keburia. He said that the company has created “truly unique” projects in different regions of Georgia, including in the capital city Tbilisi, the wine region of Kakheti, and the seaside resort town in Adjara.
Prime Minister Garibashvili pointed out that the project complies with environmental and safety standards. Garibashvili also said that Georgia “needed to implement” such large-scale projects, stressing that the Batumi Island project shows that today there are “unique conditions” in Georgia.
The project's co-founder, Pridon Katamadze, has previously announced that the construction of the first palm-shaped artificial island will be completed by 2028.
The Georgian infrastructure ministry reported that the China Road and Bridge Corporation, the contractor company for a road rehabilitation project in the country's western Guria region, had been fined GEL1.7mn ($629,664) for failing to fulfil the terms of the contract.
The statement came on August 10 in response to a media report. It rejected its claims that the company had escaped a fine, further adding that the news story about the project had been "saturated with factual errors".
The statement also noted the contract with the company had been terminated on one section of the road out of nine due to a delay in the execution of the work schedule, saying the company had reimbursed GEL4.8mn to the state budget.
The Chinese company has significantly increased the pace of production of road rehabilitation works. "However, the progress of works remains under monitoring, and in case of poor progress, proper measures will be taken as specified in the contract", the statement read.
The 63 km road is funded by the World Bank. It seeks to improve the local road infrastructure, ensure the safety and comfort of traffic, and reduce travel time and costs. The roads are estimated to be completed at the end of November 2022.
Georgia’s Ministry of Economy has asked international consulting company Maritime & Transport Business Solutions (MTBS) to update the freight forecast and business model for the Anaklia deep sea port project on the Black Sea coast. The update is expected to be completed within eight to nine weeks.
The government terminated its contract with the Anaklia Development Consortium (ADC) in early 2020, citing the investors’ failure to finance their intended $2.6bn project and find a strategic partner.
The government was set to start the process of selecting a new potential investor for another attempt at rolling out a project in the near future, Georgian Prime Minister Irakli Garibashvili said in March.
MTBS will also develop a new marketing strategy and select the optimal model of public-private partnership as part of the contract signed with the Anaklia
60 GEORGIA Country Report October 2022 www.intellinews.com