Technical and Financial Advisor for the Anaklia Deep Water Port PPP Concession Project

Challenge

Located on the shortest route from Asia to Europe, Georgia is part of the TRACECA corridor. Cargo traffic through the country's four existing ports had been increasing significantly over the past years, and the ports were congested. Also, the water depths in the ports were not sufficient to accept Panamax or VLC vessels. To improve the situation and to benefit from the strategic location, the Government of Georgia planned to establish a new deep-water port in Anaklia under a BOT type Public Private Partnership scheme in a competitive tender. To assist the Government in the selection process, HPC was mandated to act as technical and financial advisor for the tender process.

Tasks Performed

• Assisted in preparing the request for proposal document and establishing a viable bidding strategy, in particular with respect to technical and financial issues for a two-stage bidding process comprising a non-binding indicative offer and a best and final offer
• Assisted the Government and the legal advisors of the Government of Georgia in preparing the investment agreement
• Technical and financial evaluation of bids
• Participated in contract negotiations with prospective bidders
• Commented on all technical and financial issues for various contract mark-ups
• Participated in internal and external meetings as required by the Government
• Prepared a financial model to assess the quality of bids and any financial consequences for Georgia
• Reviewed the documentation submitted by the concessionaire

Benefit

With the support of HPC successful negotiations took place that led to the selection of a winning consortium.