International court rejects lawsuit against Georgian government over Anaklia port
Anaklia port lawsuit rejected
The International Arbitration Court of the International Chamber of Commerce (ICC) has rejected the lawsuit filed by the Anaklia Development Consortium (ADC) against the Georgian government. In a statement, the consortium noted that the details of the arbitration decision and process remain confidential.
The Anaklia Development Consortium (ADC) is a company that was supposed to construct the deep-water Anaklia port in western Georgia many years ago. However, in January 2020, the investment agreement between ADC and the Georgian government was terminated. The consortium deemed this termination illegal and sought $1.5 billion in compensation for its investments.
“The arbitrator’s decision is disappointing – we still believe that the Georgian government acted improperly, to the detriment of Georgian citizens, when it sought to undermine the Anaklia port project. This led to nearly a decade of delays for the port project and the loss of thousands of jobs and revenue for Georgia,” ADC stated.
Mamuka Khazaradze, the founder of the consortium, is also the leader of the opposition party “Lelo.”
The Georgian government, in turn, considers the arbitration court’s decision not only a legal but also a political victory.
Government representatives accuse Mamuka Khazaradze and his partners of political maneuvering and predict their defeat in the parliamentary elections on October 26, 2024.
On July 29, Georgian prime minister Irakli Kobakhidze commented on the International Arbitration Court’s decision during a broadcast on “Imedi” television, stating that the consortium itself failed the project because it could not attract investors:
“Let us recall, they sought investors everywhere – in the West, the East, and the North, but they could not secure an investor anywhere. Therefore, they are essentially at fault for the failure, and the state has been absolutely transparent in this matter.”
According to expert Gia Khukhashvili, since both sides are publishing only those parts of the court’s verdict with which they agree, it is difficult to draw specific conclusions. The expert does not question the fairness of the International Arbitration Court’s decision but notes that the ICC does not see hidden political motives behind the Georgian government’s actions.
On May 29, 2024, the Georgian government announced that the 49% stake in the Anaklia port would be acquired by a Chinese-Singaporean consortium.
The consortium, with which the Georgian government will soon officially sign a contract for the port, includes China Communications Construction Company Limited (China) and China Harbour Investment (Singapore). The consortium also has two important contractors: China Road and Bridge Corporation (CRBC) and Qingdao Port International (QPI).
All of these companies are state-owned.
