Despite Georgia’s costly arbitration loss to Turkish company ENKA over the canceled Namakhvani HPP project, the chairman of the Turkish Businessmen’s Association in Georgia, Oktay Ozturk, believes the country remains an attractive destination for investment, particularly for Turkish businesses.
In an interview with BMG, Ozturk emphasized that Georgia continues to offer a favorable business environment supported by transparent tax and revenue systems and active government assistance.
“The government is helping investors, issuing licenses, building infrastructure, supporting businesses. What more can they do?” said Ozturk. “There is a positive climate for investment. What’s essential now is for investors to build strong relationships with the local population.”
When asked about the impact of the ENKA dispute, now costing Georgia over $450 million, on Turkish investor sentiment, Ozturk said the issue was not about state policy but about communication with communities.
“I don’t think ENKA did anything wrong. But public relations was lacking. Before launching a major project, especially one involving land use, it’s important to gain the consent and trust of locals. That would be my advice to future investors.”
Ozturk suggested that such disputes could be avoided if companies proactively engage with communities early in the investment process.
Looking ahead, Ozturk pointed to tourism and energy as the most promising sectors for Turkish investment in Georgia. He stressed that while the overall investment framework is strong, the government should consider expanding financial incentives for larger projects.
“The tax system is very good. But after a certain scale, bigger projects need more support tools. More incentives from the state could attract larger capital.”
He also highlighted the successful investment of Anadolu Energy Group, which has already committed $50 million to Georgia and plans to expand in sustainable energy.
“Turkish businesses have deep expertise in tourism and hospitality. Combine that with Georgia’s natural beauty, and you have incredible potential. Energy is another key sector, we’re already seeing significant Turkish investment there.”
Georgia’s arbitration loss to ENKA became public in December 2024, with the country initially ordered to pay $383 million in compensation for terminating the Namakhvani hydropower project. That amount has since risen above $450 million due to additional penalties and interest.
