- Concession of Poti Sea Port for 49 years
- Development and Operation of Free Industrial Zone (400 Ha) Adjacent to the Port for 49 Years.

Vision

Georgian Government is to develop existing Poti Port and an area adjacent to the port for creation of the Free Industrial Zone, making it one of the leading Free Economic Zones in the region.

Snapshot

 Growing cargo turnover between European and Asian countries provides Poti Sea Port with potential to expand its capacity and handle up to 25 million tons of cargo annually.

An adjacent area to the port (at least 400ha), along the Black Sea, is proposed for a Free Economic Zone development.

The two projects are available for development jointly or separately.

Legal Framework

 A newly enacted Law  of Georgia on Free Industrial Zones provides: 

 Main principles 

• The investor secures the financing and carries out the project.
• Interest can be expressed separately/solely for the port development and for the FZ development, or as a combined development. A detailed Master Plan should be submitted for consideration.
• It collects all the port duties and other fees
• Management rights will be awarded on the basis of a payment of the amount fixed by the Government and paid in advance
• Mutually agreed Master Plan will become a part of the contract
• The Government does not participate in project implementation and management and does not undertake any project risks.

 Technical aspects 

• The respective operator should create functional facility to include administrative support, operational customs related logistics, all major infrastructure and utilities network.
• The expected turnover to accommodate higher capacity cargo should take place within 9 months of the contract signing.
• The Government will facilitate the development of infrastructure to the Free Zone boundary (motorway, rail, water, electricity, gas, communications)
• The operator should submit a Master Plan to include: Timeline of Poti Port infrastructure rehabilitation, a detailed outline of the Zone development strategy; investments; and the number of jobs it will create

 Estimated Plan for Poti Port Turnover Growth 

 Economic aspects 

• The Government does not participate - either directly or indirectly - in the financing of the project
• The management rights will be awarded to an operator with a commitment of a good faith payment of an estimated lump sum in the amount of $60 million for the Poti Port and $10 million for the 400 hac. of adjacent land.

Legal aspects 

• The existing port and zone area can be developed jointly by one operator or by separate operators according to a mutually agreed on master Plan announcement
• The proposal and Master Plan agreed on between the operator and the Government is a part of the contract and serves as basis for monitoring fulfillment of commitments by the operator
• The operation of the FZ will be regulated according to new laws on industrial zones recently adopted by the Georgian Government.
• The Government shall provide the simplest possible administrative and other procedures necessary for corporate management

 Proposal evaluation criteria & selection principles 

• During the selection process, all submitted proposals will be evaluated according to the Master Plan and the amount to be paid for the existing port. The preference will be given to the content of the Master Plan.