Anaklia Development Consortium files lawsuit against Georgia in arbitration court
Anaklia Development Consortium has started a legal battle against Georgia in international arbitration court. Two separate suits are being filed. The first comes directly from the consortium, the second from Bob Meyers, one of the largest co-owners of the consortium.
In the lawsuits, they estimate the damage caused by the Georgian government at $1 billion.
A member of the supervisory board of the consortium, Ted Jones, says that the amount indicated in the claims amount was calculated by adding up investments made by investors, as well as the calculated profit that they should have received.
“This is a dead-end case,” said Georgian Minister of Economy Natia Turnava. She says that this is an attempt to politicize the issue and the obstacles they face in the search for new investors. The minister said that the consortium did not fulfill its obligations, and that if they want to bring up charges, they should bring them up against themselves.
The Georgian government has hired White & Case LLP to defend its interests in the international arbitration. The cost of the three-month contract was $319,000.
The Georgian government terminated the contract with the Anaklia Development Consortium on January 9, 2020 due to its failure to fulfill its obligations.
On January 8, 2019, a criminal case was initiated against the former chairman of the Consortium Mamuka Khazaradze and his vice chairman Badri Japaridze. They accuse TBC Bank of financial irregularities.
The Georgian government has not yet announced a new tender for the construction of the deep-water port of Anaklia.