Meridian Capital confirms withdrawal of Anaklia Deep Sea project

Meridian Capital NL B.V has confirmed that at this stage it does not have the means to become an investor in the Anaklia Deep Sea Port Project. The Ministry of Regional Development and Infrastructure of Georgia shard the information due to high interest in the project.

According to the Ministry, after the American company “Conti International” decided to withdraw from the Anaklia Deep Seaport project, the Anaklia Development Consortium submitted a proposal to the Georgian government to approve Meridian Capital NL B.V. as a replacement.

The decision to approve a new investor replacing Conti International was set by an investment agreement on October 29th of this year.

On October 28, 2019, a representative of Meridian Capital NL BV addressed a letter to the Ministry of Regional Development and Infrastructure of Georgia confirming that Meridian Capital NL BV at this stage does not have the capacity to invest as an investor in Anaklia Port and requested from the Government of Georgia to terminate all the procedures connected to approving the company as an investor.

The Ministry of Regional Development and Infrastructure of Georgia considered the request of Meridian Capital NL B.V and expressed its readiness to support all investors with relevant experience, financial and business reputation in the future to participate in Anaklia Deep Se Port Development Project. The Anaklia Development Consortium was given the deadline by the end of 2019 to obtain the funding needed to build the first phase of the port, as well as raising its capital, and by the end of the year, the consortium had to submit $ 400m of loan agreements. The same amendment set the interim deadline, namely that on October 15 the consortium would fulfill two obligations – present binding contracts with potential investors to raise $ 120 million in the capital, the entry into force of which depends on banks attracting $ 400 million in loans. The second obligation- to submit preliminary agreements signed with international banks to attract $ 400 million in loans that will be acceptable to the Government of Georgia on the part of the Government. The Government extended the deadline to the end of the year for the Consortium to fulfill its obligations.

Since the Meridian Capital withdrew from the project it reduces the chances of successful dialogue between the Government and the Project. As Maya Tskitishvili, the Minister of Regional Development and Infrastructure of Georgia said, the more the end of the year approaches the harder it will be for the Consortium to find the necessary investments to fulfill the project’s needs.

Meanwhile, The Parliament of Georgia will discuss the Anaklia Deep Sea Port project on October 30. Anaklia Consortium for Development shared this information with the public.

“As it is well known to the public, the Anaklia Development Consortium has agreed to take part in an open format meeting, to submit a report and to address any questions raised around the project. Parliamentary consideration of the Anaklia Deep Sea Port Project is scheduled for 11:00 pm on October 30, 2019,” reads the Anaklia Development Consortium statement.