Georgia’s Prime Minister Irakli Kobakhidze on Wednesday said the recent ruling by the Paris Arbitration Court had confirmed the failure of the Anaklia Development Consortium, earlier led by current opposition leader Mamuka Khazaradze, in delivering on the Anaklia deep-sea port project.
Speaking with the press, Kobakhidze described the decision as “absolutely logical” and aligned with the Georgian government’s position on the matter.
Kobakhidze stressed the arbitration ruling validated the government’s stance, highlighting that the consortium, under Khazaradze’s leadership, had failed to fulfill its contractual obligations. “Khazaradze was defeated because he abandoned the most important project of Anaklia,” Kobakhidze told reporters. He emphasized that the government had provided “extensive support” to the consortium, including several deadline extensions and amending the conditions to facilitate investment. Despite these efforts, Khazaradze was unable to attract the necessary funding, leading to the project’s abandonment and the subsequent legal dispute, the PM noted.
The lawsuit was initiated on July 29, 2020, by the Anaklia Development Consortium and its primary foreign investor, Bob Meyer, who accused the Georgian government of violating their rights in the Anaklia port project. The plaintiffs sought over $1 billion in damages, claiming significant financial losses due to the government’s actions.
However, on July 29, 2024, the Paris Arbitration Court ruled in favor of the Georgian government, concluding that the termination of the investment agreement was legal. The court dismissed the consortium’s claim for $1.5 billion in compensation and instead ordered the consortium to pay $650,000 to the Georgian government.
Georgia’s Minister of Justice Rati Bregadze also confirmed the ruling, noting that the court’s decision had “clearly established” the state’s legal position.
The Anaklia port project was one of the most significant infrastructure initiatives in Georgia, aimed at boosting the country’s strategic importance in global trade. This year’s announcement by the Government to allow a Chinese company to build the port has caused controversies and critical statements both inside and outside the country.
