Dechert LLP advised the Ministry of Economy and Sustainable Development of Georgia on the successful conclusion of negotiations with Anaklia Development Consortium LLC for the Anaklia Black Sea Deep Water Port Project. The two sides signed an investment agreement on October 3, 2016 providing for a first phase of US$580 million and a potential total investment of US$2.5 billion.
The infrastructure project is one the largest in Georgia and will strengthen transportation infrastructure between Asia and Europe. The Port project is expected to revitalize both the Caucasus and Central Asia regions by opening up trade routes from China to the Black Sea and Europe. It is part of the New Silk Road transport corridor that passes through landlocked nations such as Armenia, Azerbaijan, Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan. The Port will be constructed in 9 phases and its transit capacity will reach up to 100 million tons. It is scheduled to open in 2020.
Dechert’s Tbilisi-based team, led by partner Nicola Mariani and national partner Archil Giorgadze, advised the Ministry of Economy and Sustainable Development throughout the investor selection and negotiation processes. Work included advising during the tender process, performing due diligence on potential investors, and structuring and negotiating the investment agreement based on a BOT (build, own, transfer) scheme signed between the Ministry of Economy and Sustainable Development and Anaklia Development Consortium LLC.
“Today is the day of outmost importance for our country – we signed the investment agreement between the State and the Anaklia Development Consortium. Within the framework of this project the Anaklia Deep Sea Port will be constructed with the 100 million tone transit capacity after the last stage of the construction. The investment of 580 million USD will be implemented during the first stage of the construction. It means that over 6000 people will be employed during the construction period while several thousand people will be provided with the workplace upon the completion of the project,” said Minister of Economy Dimitry Kumsishvili at the signing ceremony.
