**Georgian Government Wins Arbitration Case Against Dutch Investor**
In a significant victory for the Georgian government, the International Centre for Settlement of Investment Disputes (ICSID) has rejected a claim by Dutch investor Bob Meijer seeking compensation over the termination of the Anaklia Deep Sea Port project. The ICSID ruling is a major blow to Meijer and his partners in the Anaklia Development Consortium (ADC), who have been embroiled in a bitter dispute with the Georgian government since 2020.
**Background**
The Anaklia Deep Sea Port project was initially planned to be developed by ADC, a joint venture between TBC Holding of Georgia and Conti International of the US. However, the project collapsed after the Georgian government terminated its contract in 2020 following a criminal investigation into alleged money laundering involving TBC founders Mamuka Khazaradze and Badri Japaridze. The two businessmen have claimed that the Georgian Dream authorities deliberately sabotaged the Anaklia port project.
**ICSID Ruling**
The ICSID tribunal found that Meijer, who was an investor in ADC, had failed to meet his contractual obligations, including securing funding for the project. The tribunal also ruled that the government lawfully terminated the investment agreement in January 2020 after multiple deadline extensions. In a surprise twist, the tribunal even ordered Meijer to pay $6.5 million to the Georgian government.
**Government Welcomes Ruling**
The Ministry of Justice of Georgia welcomed the ICSID ruling, stating that it confirmed that the failure to implement the Anaklia Port project was entirely the responsibility of Mamuka Khazaradze and Badri Japaridze, along with their partners. The ministry accused Meijer of “alone bearing the commercial risks of the project” and failing to secure funding.
**Opposition Reacts**
The opposition Lelo party responded by accusing GD officials of lying about the ICSID case being connected to its party leaders. The party stated that the dispute was between Meijer and the state, and that the government had killed the Anaklia project on Russia’s orders six years ago.
**Next Steps**
Tbilisi has intensified talks on reviving the Anaklia project after Russia’s full-scale invasion of Ukraine shifted part of international cargo transit toward the Middle Corridor. In May 2024, a Chinese-Singaporean consortium won the bid to develop the port, but critics have raised concerns about the reputation of selected companies.
**The Verdict**
In conclusion, the ICSID ruling is a significant victory for the Georgian government and a major blow to Meijer and his partners in ADC. The decision confirms that the government was within its rights to terminate the investment agreement, and even orders Meijer to pay $6.5 million to the Georgian government.
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