Anaklia

Georgian Government Hires Consultant to Review Alternative Master Plans for Anaklia Port

On April 24, the Georgian government signed a €101,480 contract with Dutch company Port Consultant Rotterdam to assess alternative versions of the Anaklia deep-sea port master plan, while the project still lacks a signed investment agreement with the Chinese-led consortium that remained the sole bidder nearly two years ago.

The decision comes after the government announced on April 8 that the cost of another portion of the Anaklia port project had been reduced by $52.5 million. Together, the cost reduction and the new review of alternative master plan options raise questions about Anaklia’s final design, investor agreement, and construction timeline, or even bigger question whether the port will be built at all. 

The subsequent developments gradually weakened Anaklia’s Western dimension. Instead of moving toward construction, the project became defined by political, legal, and tender-related setbacks. The chronology shows the connection:

  • In 2018, Giorgi Kvirikashvili, the prime minister under whose government the Anaklia project had gained momentum, resigned amid reported disagreements with Bidzina Ivanishvili over economic policy. Georgian Dream representatives linked the dispute to a UNICEF study, but Kvirikashvili later dismissed that explanation as unserious.
  • In 2019, Mike Pompeo framed Anaklia as a strategic project that would connect Georgia to free economies and protect it from Russian and Chinese economic influence. The following reaction showed that Western context of Anaklia was unacceptable to Moscow.
  • Criminal proceedings were later launched against Mamuka Khazaradze and Badri Japaridze, the project’s key Georgian stakeholders. Their assets were frozen, and civil society organizations raised concerns about the political and legal context of the case.
  • In January 2020, the Georgian government terminated its agreement with the Anaklia Development Consortium, which included Georgia’s TBC Holding and the U.S.-based Conti International. This effectively ended Anaklia’s Western-backed phase.
  • In May 2024, the government said that the Chinese-Singaporean consortium involving China Communications Construction Company Limited was the only bidder to submit a final proposal and would be declared the winner “in the coming days”. However, by August 2024, officials stated that no winner had yet been announced and that the consortium remained only the sole applicant, 
  • Nearly two years later, no investment agreement has been signed with CCCC, while the government is now reviewing alternative versions of the master plan.
  • CCCC is not a neutral replacement for the previous Western-backed consortium. The company has faced U.S. criticism and restrictions, including over links between its subsidiaries and China’s military expansion in the South China Sea. In 2025, the U.S. Department of Defense listed CCCC among Chinese military companies.

Therefore, the question is political rather than technical: is the government building Anaklia in Georgia’s sovereign interest, or is it using the project to buy time, pressure Western partners, and keep uncertain a port whose original Western-backed construction was unacceptable to the Kremlin from the outset?

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How Does the Georgian Dream Respond to Messages from the US Regarding Anaklia?

Contrary to the expectations of representatives of the Georgian Dream, recent statements by American politicians confirm that the Trump administration is not indifferent to the decision to transfer the Anaklia Port project to a Chinese company. Furthermore, both Republican and Democratic party representatives view the potential involvement of a Chinese firm in the Anaklia project as an attempt by China—a strategic rival of the United States—to expand its influence in the Black Sea region.

Representatives of the Georgian Dream party have offered differing narratives in response to Washington’s recent statements concerning the Anaklia port project. The illegitimate Prime Minister, Irakli Kobakhidze, attributed the remarks by American officials to the influence of the so-called “Deep State.” Meanwhile, the Vice Prime Minister, Levan Davitashvili, cast doubt on the potential transfer of the port to a Chinese company.

For a comprehensive overview of the Georgian Dream’s latest statements and positions regarding the Anaklia port, please refer to the full report.

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Helsinki Commission responds to Anaklia port case

The members of the American Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, expressed concern over the fact that the Georgian Dream party has surrendered control of the Anaklia deep-sea port to a Chinese conglomerate, which is sanctioned by the U.S. and backed by the Chinese government.

According to the seven representatives of the commission, one of the parts of the conglomerate, China Communications Construction Company often uses infrastructure development projects to exploit and destabilise the countries and increase their dependence on China. Apart from this, the commission underlines the dangers of the growing Chinese presence in the Black Sea, which, according to them, jeopardizes the region’s safety and free trade. The statement also highlights that China grows its presence in the region by its collaboration with Russia.

According to the conclusion reached by the commission, the Georgian Dream party will further endanger the democratic trajectory of the country and the ability to determine its own economic future. The Congressmen call on the party to reconsider its decision and evaluate bids based on how fairly and transparently they develop the critical infrastructure.

It is noteworthy, that the statement is signed by Republican, as well as Democrat Senators and Congressmen.

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Anaklia Deepwater Port’s Elusive Investor

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.

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How is the potential Chinese investor in Anaklia linked to the tragic incident in Serbia that left 14 people dead?

The incident in Serbia, which led to the tragic loss of 14 lives, occurred at a railway station renovated by the same company now considered a potential Chinese investor in the Anaklia port project.

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Impact of Chinese Investment in Anaklia: Strategic Implications for Georgia and Europe

On May 29, 2024, the Georgian Minister of Economy and Sustainable Development, Levan Davitashvili, announced that the public-private partnership selection process winner for Anaklia port development will be a Chinese-Singaporean consortium. This decision marks a significant shift in Georgia’s Euro-Atlantic aspirations and raises security concerns due to the geopolitical implications of increased Chinese involvement.

CHOICE (China Observers in Central and Eastern Europe) reached out to Civic IDEA to provide expert analysis on the implications of the Anaklia Sea Port project for Georgia and Europe. Lawyer/Researcher Ketevan Gelashvili and researcher Aksana Akhmedova from Civic IDEA have prepared an in-depth article examining every crucial detail on this subject.

Full Link 👇

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ANAKLIA PORT – ANOTHER STEP IN SHIFTING FOREIGN POLICY

During a briefing on May 29, 2024, Minister of Economy and Sustainable Development of Georgia, Levan Davitashvili, revealed that China Communication Construction Company Limited and China Harbor Investment, a Chinese-Singaporean consortium would shortly be declared as the winners of the public-private partner selection contest for the Anaklia port construction project. Given the strategic importance of the Anaklia port project, it is particularly significant who is chosen as the winner of this competition. The document briefly overviews the stages and procedures of the procurement in addition to the international market experience and reputation of the potentially winning company, the impact of the Georgian Government’s decision on the country’s interests and its path toward Euro-Atlantic integration. For detailed information, please see the full report below 👇

 

 

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