Concession of Poti Sea Port and Development and Operation of Free Industrial Zone (400 ha) Adjaracent to the Port for 49 Years

N O T I F I C A T I O N   F O R   E X P R E S S I O N   O F   I N T E R E S T

The Ministry of economic Development of Georgia invites international companies for the expression of interest on:

Poti Sea Port, one of the largest ports on the Black Sea coast and largest dry cargo handler in the Caucasus, located on the TRACECA corridor is an essential part of the Caucasus transit transport network, providing direct waterway access to major ports of Europe and Asia, including ferry connections to major Black Sea Ports of Ukraine, Russia and Bulgaria. The port has direct connection with the country's railway network as well as motorway links with all towns and cities of Georgia, as well as access to Poti Port and Batumi (80km) International Airport. In 2006 Poti Sea Port turnover reached 7 million tons with annual increase by 9.1% (in 2007 12% increase is projected), while container handling volume was 127 thousand TEU (19.2% growth relative to 2005). The port handles all types of cargo and is navigable all-year round. The well-known shipping lines and forwarding companies, such as: Maersk, CMA-CGM, MSC, ZIM Line, etc are performing their operations in the Poti Sea Port; besides, several terminals are operated by private companies on the basis of lease agreement. As one of the best-equipped and modernized ports on the Eastern Black Sea coast it has been awarded by ISO 9001-2000.

Taking into consideration the growing cargo turnover between European and Asian countries, the Poti Sea Port has a potential to develop its capacity and attract and handle up to 25 million tons of cargo annually.

Concession of the port is intended to be granted as part of a Port and Free Industrial Zone Development project. The proposed Free Zone area (400 ha) is directly adjacent to the port from the north along the Black Sea coast. Concession is intended to be granted for 49 years.

The investor is supposed to develop essential Free Industrial Zone infrastructure, construct necessary facilities, establish relevant procedures and rules and manage the Zone during the concession term in accordance with Georgian laws, as well as to promote investments therein from global companies, thus, creating potential for an increased flow of cargo through the port.

Interested parties are requested to submit the following information:

• Official name and address, accompanied by a company profile;
• Experience statement, evidencing the Applicant's involvement and capability to manage a free zone;
• Foundation and registration documents;
• Audited balance sheet and financial statement for the preceding 3 (three) years;
• List of shareholders owning more than 5 (five) percent of the Applicant's capital stock;

The Expression of Interest must be sent before 18:00 of local Tbilisi time (GMT+3) Tuesday, September 14, 2007 to the Ministry of Economic Development of Georgia:
#12, Chanturia St. Tbilisi 0108, Georgia
Tel:+ 995 32 999 104
Fax: +995 32 95 12 34
E-mail: eoi@econom.ge