Anaklia

The Anaklia Deepwater Port project, long touted by the Georgian Dream as a flagship endeavor, remains shrouded in ambiguity. Despite persistent assurances from the government, details regarding the selection of a private investor continue to elude the public.

On January 20, 2025, Minister of Economy and Sustainable Development Levan Davitashvili confirmed that construction work has officially commenced, with negotiations with a private investor also underway. According to Davitashvili, the project’s original Chinese-Singaporean consortium is now being expanded, with new players joining the ranks. Further information on this development is expected to be released in February. He also announced that April would mark the deadline for the consortium to submit an updated proposal.

Key milestones to note:

• February: The public will be informed about the ongoing negotiations, including details about the new consortium members.
• April: The Sino-Singaporean consortium aims to finalize and submit an updated proposal.

However, past promises to keep the public informed have been repeatedly postponed. Last year, Davitashvili made several commitments about the project’s progress:

• May 29, 2024: The Chinese-Singaporean consortium was announced as the preferred bidder, with Davitashvili stating the consortium would be officially named winner within days. Nearly eight months later, negotiations remain ongoing.
• October 8, 2024: The minister promised a public presentation of the project’s progress in the “coming days,” citing intense negotiations with the investor that would soon conclude. Four months later, this much-anticipated presentation has yet to materialize.

In addition to the ongoing investor negotiations, questions loom over the expansion of the Chinese-Singaporean consortium. As reported in our previous analysis, the two known members of the consortium—China Communications Construction Company Limited and China Harbour Investment Pte. Ltd—carry a reputation for controversy on the global stage. Given the Georgian Dream’s tendency to overlook due diligence when selecting Chinese firms for infrastructure projects, the addition of new players to the consortium raises legitimate concerns about the project’s viability and potential risks.

Minister Davitashvili’s statement was soon followed by a declaration from Georgian Dream representative Irakli Kobakhidze, who noted that the agreement with the Chinese-Singaporean consortium had entered an “intensive phase,” with consortium representatives currently in Georgia for talks. However, as Davitashvili’s earlier statement indicated, the investor selection process will likely continue until at least April 2025.

The Anaklia project has been a favorite talking point for the Georgian Dream, touted as a testament to the government’s economic success—particularly during election cycles. After the elections, the rhetoric has remained unchanged, with continued references to the port’s potential to drive economic development. Notably, the 2025 state budget allocates 150 million GEL to the project. However, the lack of concrete progress and persistent delays in selecting a private investor leave many questioning whether this project will ever come to fruition.

Why the Delays?

The official reason behind the year-long delay in finalizing a private investor remains unclear. However, several factors likely contribute to the extended timeline:

1. Ownership Issues with Consortium Member: The controlling stake in China Communications Construction Company Limited (a member of the Sino-Singaporean consortium) is held by the state-owned China Communications Construction Group. According to the tender’s exclusion clauses, companies in which the state holds more than 30% of the shares are ineligible to participate in the selection process. This potential violation likely posed a significant obstacle during negotiations, prompting the inclusion of additional partners to ensure compliance.
2. Financial Guarantee Concerns: HSBC Bank was initially listed as the financial guarantor for the consortium, but doubts persist regarding the bank’s involvement. If HSBC is not providing the promised financial guarantee, it would explain delays in finalizing the agreement.
3. Political Sensitivities: The current political climate in Georgia, shaped by the Georgian Dream’s increasingly anti-Western stance, presents another challenge. Announcing a Chinese-Singaporean consortium as the private partner for the Anaklia project could provoke public backlash, potentially escalating tensions. The government may be delaying progress to avoid further public unrest.

In sum, while the promises surrounding the Anaklia Deepwater Port project continue to multiply, the reality is far less clear. With crucial negotiations dragging on and the specter of political and financial complications looming large, one has to wonder whether this much-heralded infrastructure project will ever leave the drawing board.