Azerbaijan Emerges as Potential Savior for Stalled Anaklia Port Project in Georgia

The ambitious Anaklia port project in Georgia has become a symbol of political turmoil and geopolitical maneuvering, as accusations fly about the deliberate obstruction by the ruling Georgian Dream party. Chairman Mamuka Khazaradze, speaking at the Lelo for Georgia party congress in Tbilisi, claimed that the port's suspension was orchestrated to thwart Georgia's economic independence, with alleged connections to Russian interests.

The Anaklia port, initially envisioned as a deep-water facility capable of accommodating heavy ships with drafts exceeding 15 meters, held promise for transforming Georgia into a key cargo distribution center. Khazaradze accused the ruling party of succumbing to external pressures, notably from Vladimir Putin, whose interests, he claimed, are being executed by influential Georgian figure Bidzina Ivanishvili. The project's halt has left the construction site and the envisioned city of Anaklia in a state of neglect, resembling a swamp.

The port's construction, initiated in 2017, faced setbacks leading to the termination of the contract with the Anaklia Development Consortium in January 2020, citing the inability to secure the required $400 million in funds. While assurances were made by Prime Minister Irakli Garibashvili that construction might resume in the autumn of 2023, the project remains mired in uncertainties.

The Georgian government is currently in the process of selecting an investor, with an announcement expected by December 2023 or January 2024. Prime Minister Garibashvili announced a budget allocation of 70 million lari (approximately $26 million) for the port's construction, but the issue of overall investment remains unresolved. Efforts to attract Chinese investors have been ongoing, with the government estimating the entire project's cost at $2.55 billion over ten years.

Expert Ilgar Velizade highlights the Anaklia port's importance for the transportation of Azerbaijani goods to the West, providing a crucial factor for traffic diversification alongside the Baku-Tbilisi-Kars railway. The geopolitical significance of the project lies in its competition with the Northern Route through Russia, especially given the diminished importance of the Northern Corridor amid the current situation in Ukraine and sanctions against Russia. The Anaklia port, forming part of the Middle Corridor across the Black Sea, is gaining popularity as a vital transit route between Europe and Asia through Kazakhstan, Azerbaijan, and Turkey.

Azerbaijan has shown keen interest in the Anaklia port, with President Ilham Aliyev expressing intentions to collaborate with Tbilisi on its construction during his visit to Georgia in October 2023. However, the complexities of this potential collaboration include the Georgian government's apparent hesitance and a suggestion that President Aliyev's proposal may involve acquiring an equity stake in the port, with 51% ownership belonging to the Georgian state.

Alexander Karavaev, a scientific expert at the Caspian Institute for Strategic Studies, suggests that the financing burden might fall on Azerbaijan, sparking speculation about a potential equity stake in the port's ownership.

But at the same time,  the geopolitical importance of the Anaklia port project becomes increasingly evident, the collaborative efforts between Azerbaijan and Georgia may prove instrumental in bringing this strategic initiative back to life, enhancing regional connectivity, and bolstering economic ties in the process.—0—