Prime Minister Irakli Kobakhidze says the Georgian government’s 33% ownership stake in the large-scale Eagle Hills development projects in Tbilisi and Gonio was secured in the state’s best interest as part of negotiations with the Arab developer.
Responding to a question from BM.GE, Kobakhidze emphasized that the agreement ensures a direct financial benefit to the state budget in addition to the overall economic impact of the project.
“Mariam Kvrivishvili was able to get the maximum in that agreement. This is an unprecedented investment coming to Georgia - USD 6.5 billion from just one company. Under the previous government, the total volume of foreign direct investments was USD 9 billion. You can imagine how much this will contribute to our GDP,” said the Prime Minister.
According to him, the deal provides for 33% of the project’s profit to go directly to the state budget, calling it a significant achievement.
“Theoretically, you can give land to an investor only in exchange for investment, but when you also secure 33% of the profit for the budget, this becomes very important, it ensures both direct economic growth and direct fiscal benefit,” Kobakhidze explained.
When asked whether the partnership agreement would be made public, the Prime Minister said he was not yet aware of the procedure but added that if required, the document would likely be published.
Under the agreement, the Georgian state holds a 33% share in the USD 6.6 billion Eagle Hills project, which is set to be one of the largest private investments in Georgia’s history. Kobakhidze thanked Economy Minister Mariam Kvrivishvili for her key role in the negotiations.
