TAV GEORGIA IS EXPECTED TO REVISE CONTRACT
04 July, 2013
TAV GEORGIA IS EXPECTED  TO REVISE CONTRACT
TAV Georgia, a Turkish-based operator company of Tbilisi and Batumi International Airports, is expected to revise its contract with Georgian administration so as to make it mutually beneficial.
Details of the revised version are not disclosed at the moment until TAV Georgia draws out its decision but very likely obligations to the investor company will be enhanced significantly, for the new draft, comprising 220 pages is almost trice voluminous compared to the 78-page previous contract, concluded by the ex-power with
TAV in 2005 when Tbilisi and Batumi airports were handed to the Turkish investor under BOT [build-operate-transfer] contract, expiring by 2027.
“The currently valid BOT contract we concluded in 2005 with government and on which we base our activity comprises 78 pages. On June 12 of this year ministry of economy sent a new 220-page amended contract that needs to be perused on our side. TAV Georgia is scrutinizing the contract terms at the moment,” Mete Erkal, General Manager of TAV Georgia, commented. Georgian side waits patiently cherishing a hope to get a mutually beneficial contract at last.
“This is a very difficult contract and when authorities prompted [on decision] and made a hasty contract previously Georgia fell in a pretty difficult situation as a contractor,” Dimitri Kumsishvili, Deputy Minister of Economy and Sustainable Development of Georgia, elaborated to Georgian Journal. “What we are trying today is to make contract mutually beneficial for both Georgian and Turkish side, this is principally important, believe me that the result can be much bigger and pleasant. TAV can construct the new runway project but all contracts that were agreed before and now should be mutually beneficial,” Kumsishvili said.
He could not name exact timelines when the new contract will be signed but the paper is expected to be through in this July tentatively, another deputy economy minister Natia Mikeladze said to radio Commersant on June 25, 2013.
The contract was highly criticized from the very first days of its conclusion and authorities were hailed in overlooking the state interests. Nonetheless, in September of 2012 TAV secured a new memorandum on 10-year prolongation of its management term at Georgian airports under an obligation to invest USD 65 million in construction of a new runway at Tbilisi airport. However new authorities found the said memorandum as well as currently valid contract between Georgian state and TAV Georgia based not on parity issues infringing Georgia’s interests. And although construction works have already been implemented by TAV Georgia since past September and, in April of 2013 authorities asked the investor to suspend works and halt the memorandum as far as the state decided to attract its own financial sources to construct the said runway. All papers were put under perusal and negotiations were expected to be completed early in this past May however the issue got protracted to mid-June.
Finally, Georgian side attached the memorandum issue to the basic contract and worked out a new draft contract envisaging amendments to both memorandum and old contract within one framework. Georgian side did not specify its pretentious except that the service quality provided by TAV was below the par, the state interest were overlooked and now the new contract should be based on mutually beneficially terms. Only in this case TAV can remain as a partner and construct the new runway too.
According to Mikeladze, Georgian side has already assessed the new runway project value and is ready to pay due compensation to the investor [if the memorandum is dissolved] but did not specify the project value while accentuated that negotiations with other investors taking an interest in Tbilisi airport are also on.
Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
21.02.2019
22.02.2019
USD
1
USD
2.6574
2.6570
EUR
1
EUR
3.0146
3.0128
GBP
1
GBP
3.4629
3.4714
RUB
100
RUB
4.0421
4.0560
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6570
EUR
1
EUR
3.0128
GBP
1
GBP
3.4714
RUB
100
RUB
4.0560