Anaklia Development Corporation promotes benefits of its deepsea project for Georgia

Anaklia, Georgia (Ports Europe) May 14, 2020 - The Anaklia Development Corporation (ADC) has published the below announcement. ADC is currently in dispute with the Tbilisi government and the project has been suspended subject to further developments. The announcement claims that ADC meets two criteria for a strong Georgian economy, foreign investment and major infrastructure projects, which the country needs to aid recovery from the Covid-19 coronavirus crisis. The current dispute between ADC and the government regards contractual issues, but is indirectly related to other Black Sea port developments in Georgia, mainly in Poti. The ADC announcement follows: As Georgia turns its attention toward rebuilding the nation’s economic strength in the wake of the Covid-19 health crisis, two vital ingredients of a strong economy — foreign investment and major infrastructure projects – naturally come to mind Published by the Anaklia Development Corporation, May 14, 2020 The development of a deep water seaport at Anaklia, together with the Special Economic Zone that would be a catalyst for thousands of jobs and the creation of a new, vibrant city, offers the perfect solution to lead Georgia’s economic rebirth. Fortunately, through the work it has already carried out, the Anaklia Development Consortium (ADC) is the right partner with the government to achieve this shared vision, ready to restart work promptly. While the project is currently stalled by a dispute with the Government, ADC has temporarily paused with filing an arbitration claim against the Government as Georgia responds to the Covid-19 public health crisis. At the same time, ADC has voiced its willingness to avoid the arbitration so that thedispute does not further delay this strategic infrastructure project, and work cooperatively with the Government to attract additional investors and continue with the work that has already commenced. The benefits of continuing development of the Anaklia Deep Water Seaport are considerable: Foreign investment: Foreign investors are already on-board with the project, with more being solicited.Jobs: Direct and indirect employment of up to 16,000.Revenue for the Government: Over the duration of the concession, the royalties to be paid by ADC to the Government are estimated to be USD 500 million. In addition, ownership of the Port of Anaklia will transfer to the Government at the conclusion of the concession period, meaning even further directrevenue for the Government. Significant progress has already been accomplished: ADC has been actively promoting the Anaklia Deep Water Port on an international level. Since signing the investment agreement in 2016, ADC has signed cooperation agreements with strategic peers along the Middle Corridor (ports in Azerbaijan, Kazakhstan and Turkmenistan); joined the Trans-Caspian International Transport Route to become a vital part of the cargo transit between Europe and China; collected commitments to attract new bulk cargo from Central Asia; and established cooperation with the Constanza port in Romania to secure the connectivity with the European Union as major trade partner.Mandate letters have been signed with four international financial institutions (IFI) including the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB) and the Overseas Private Investment Corporation (OPIC) for debt funding of $400 million.Eiffage, one of the largest European construction companies, has been selected as the general construction contractor for the Anaklia Development Consortium. Eiffage will provide the construction of the first phase for Anaklia Port together with its local and international partner companies: Dutch ABB and Georgian CRP.SSA Marine, a major U.S.-based international port operator, has been appointed as terminal operator for the Anaklia Deep Water Seaport.ZPMC, China’s largest company, has been selected to supply Anaklia port with electrified rubber tired gantry (eRTG) cranes, and Hyundai Samho Heavy Industries Co., Ltd of South Korea to provide Ship to Shore (STS) container cranes.Site development work has already commenced with dredging 5 million cubic meters of sand removed from the sea and used to level the land in the port area. This work was carried out by Van Oord Dredging and Marine Contractors BV of The Netherlands. Drainage systems have also been installed. Altogether, site development work has also included construction of a 2.5km irrigation channel and inner roads, transfer of existing communications lines, geodetic surveying and waste removal. Special Economic Zone to Provide Added Economic Benefits for Georgia Anaklia City, the Special Economic Zone that would accompany the development of the seaport, would be a thoroughly innovative city of outstanding urban design, featuring modern sea, rail and air links,and considerable diverse employment opportunities in logistics light manufacturing, development, healthcare and other sectors, with an emphasis on sustainability. This is part of the long-term vision for Anaklia to be a new regional business centre with large-scale logistics and industrial parks, a new City with a business and financial centre, education and healthcare facilities, plus sport and recreational infrastructure, all of which will create thousands of new jobs inGeorgia. Similar to the progress on the Deep Water Seaport, the consortium has also been progressing toward development of the Anaklia City Special Economic Zone, including considerable interest expressed by Japanese investors in relation to both projects. In 2019, the Japanese government allocated financial and professional resources to complete certain studies and prepare a conceptual masterplan for Anaklia City, prepared by the Japanese company Nippon Koei, funded by a grant from the Japanese Ministry of Economy. This work is still ongoing, and the Japanese partners would be eager to resume cooperation with ADC. Anaklia City also signed a Memorandum of Understanding on strategic partnership with the Asian Development Bank (ADB), promising to provide technical and financing support. As Japan and other Western countries consider relocating their manufacturing from China, Georgia – through the Deep Water Seaport and the Special Economic Zone – presents an attractive opportunity to such countries and manufacturers. To abandon these strategic opportunities would be a severe setback for Georgia. Anaklia is the only suitable location if Georgia is to realize its full potential as a transport hub and a transit corridor. The long-term commitments for the Anaklia Deep Seaport project and constantupgrade of the port’s capacities is a sound signal to Georgia’s neighbours and partners, that the country is a reliable and committed partner for the development of international transportation corridors. Once the project is implemented, Anaklia will be an international transport and logistical hub and a world-class business and cultural destination; establishing Georgia as a focal point between Asia and Europe. The Anaklia Deep Water Seaport and the Anaklia City Special Economic Zone represent thebest opportunity for Georgia to achieve this great vision. END Copyright (C) Ports Europe. All Rights Reserved. 2020.

Anaklia Development Corporation promotes benefits of its deepsea project for Georgia

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