The FINANCIAL — Open Society Georgia Foundation presented analytical report about ,, Georgian Railway: Challenges and Perspectives”. Project was implemented from October 2007 through January 2008.
,, In light of significance of Georgian Railway for country’s political and economic development, the project aimed at analyzing and assessing the railway policy pursued by the Georgian authorities” Irina Lashkhi, project coordinator told to FINANCIAL.
According to report, On 16 August 2007, the government of Georgia issued an ordinance (#423) on transferring “Georgian Railway “LLC to the company “ Parkfield Investment Limited” under management Right. Pursuant to the ordinance, 100% in state ownership was transferred to the above investment company under a management right for 99 years.
As it became known later, this transaction failed and the normative act on transfer of the company under management right was invalidated by Ordinance #622 of the Government of Georgia dated 13 November 2007.
According to Irina Lashkhi, the company named “parkfield Investment Limited” is not registered on internet, there is only one company by similar name but they declared that never had negotiations with Georgian Government.
“There was investment strategy presented by Georgian Government, but investor did not agree it and this transaction were cancelled. It was promise of invest USD several billion and when Georgian side insisted on explanation about company’s personality, type and investment schedule, negotiations failed. As far as I remember, it was offshore zone company, which presented such conditions but finally did not execute them “- Vakhtang Lezhava, Ist deputy Minister of Economics told to FINANCIAL
“That what happened since June, has not met transference standard requirements, because of who was “Parkfield Investment Limited”, why and for what conditions transferred Government him Railway under a right order, it was very unclear for society and that’s why the negotiations failed. Today this procedure is still in process, so we want from Ministry of Economics transference of current situation- “According to David Darchiashvili, Director of Open Society Georgia Foundation.“
According to report, In November 2007 the Ministry of Economic Development of Georgia made an announcement on alienation of share of, Georgian Railway” LLC in the state ownership. January 25, 2008 was fixed as a deadline for submitting applications.
Irina Lashkhi gave FINANCIAL the list of companies interested alienation of “Georgian Railway” LLC in the state ownership:
1. Stratton Holdings, Investment management firm located in the USA
2. Center Invest Capital Partners- (according to the Ministry of Economics, it’s Russian company, further information about this company is not known)
3. Capital Investment Group AG (according to the Ministry of Economics, it’s Swiss company)
4. East Capital (according to ministry of Economics, it’s American company but after research on internet, discovered that company by this name is registered in Stockholm and is engaged in management of actives).
5. Silk Road Group – Georgian Holding, with different business interest.
According to Lashki, details about these companies are confidential by the Ministry of Economical Development.
,,The Ministry of Economics has logical answers about commercial secret of companies, their demand to remain conditions confidential. In this case its also logical, that the Government might appeared in not beneficial situation, but there are more imperatives, as society have to know more about the case- “ told to FINANCIAL Darchiashvili.
,, We have not any obligation about alienation of Georgian Railway or attracting investors. We discuss every possible version, included maintaining it in state control, also attracting minority stock investements, as well as discussing issue to give control package under a management right, in case the requirements are satisfied” – Vakhtang Lezhava told to FINANCIAL.
According to Ramaz Sakevarishvili, expert of Economics, “Georgian Railway provides sufficiently big amount in budget, so when there is talking about alienation of Railway, we must concentrate that all benefits railway brings are increased more. Unfortunately talks about alienation of Railway in Georgia have been during years and we still have not clear perception in what kind of scheme and in what dates it might end. “
“Because of we have not clear formatting way in what direction we have to go, I hope Government will choose the best way and it’s very important to be this information open to society. We saw the previous attempt was unsuccessful, so risks are very high. “- he added.
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