Summary: The structure of an electric car factory in Kutaisi was announced as early as 2019 by the then Prime Minister, Mamuka Bakhtadze. According to its commitment, the electric car factory to be built in cooperation between China’s Changan and I-Group, which were to start promoting electric cars from 2020.
To this end, the government transferred a 100 ha land plot for the symbolic price of GEL 1 with conditions of privatisation. According to these conditions, the company was to create an enterprise producing electric cars in no more than 24 months after signing the deal and it was to produce at least 5,000 electric cars either on its own or through the third party within a period of no more than 18 months. In addition, it was also supposed to employ 300 people for at least 18 months. In accordance with the assessment of the Levan Samkharauli Forensics Bureau, the market value of the aforementioned non-agricultural land plot was GEL 86 million.
The implementation of the assignment was hampered due to the COVID pandemic. In April 2021, the government extended the contract with the company and extended the duration of construction of the plant from 24 to 36 months. The production start year was set for 2022.
In October 2021, the Prime Minister of Georgia, on his stopover in Kutaisi, said that production of electric cars would begin soon. Two months after this statement, the then Minister of Economy, Natia Turnava, was already talking about the production of electric cars. batteries instead of electric cars. In April 2022, the Prime Minister was still raising the electric car factor and said that active negotiations were taking place with the Chinese side on the expansion of the project.
One and half years have passed since the Prime Minister’s latest statement and there is still no progress in terms of the construction of the electric car factory. Therefore, the production of electric cars that was pledged years ago did not start either in 2020 or in 2022 and the pledge still remains a pledge.
Given these circumstances, FactCheck concludes that Rostom Chkheidze’s statement is TRUE.
Analysis: During the consultation of the Georgian Parliament, MP Rostom Chkheidze spoke about the order of an electric car factory whose structure he announced in Kutaisi and said: “The Georgian Dream has submitted with great fanfare an order for an electric car factory in Kutaisi. The Prime Minister at that time said that electric cars to be produced there would be Georgia’s main export product. The land, valued at several million laris, has been transferred to Group I, which has close ties to the Georgian Dream. According to the order, the electric car factory to be built in 24 months with an area of one hundred hectares. Promises are promises.
In April 2019, the then Prime Minister Mamuka Bakhtadze announced the construction of an electric car factory in Kutaisi. In June 2019, a grand presentation was held in Kutaisi where the Prime Minister talked about the project and stated: “For the first time in our region, the production of electric cars begins in Georgia. The Changan company, which is the world’s largest producer of electric cars, having a strategic partnership with such giants as Volvo, Volkswagen and Ford, decided that the electric car factory will be built in Georgia and from as early as 2020, we will be able to provide the market with electric cars.”
Then-Prime Minister Mamuka Bakhtadze added: “The production capacity of the plant will be 40,000 cars. Of this amount, 50% will go to the domestic market and 20,000 will be exported to the EU. This is a great success, as electric cars, the Made in Georgia logo, will be Georgia’s main export product to the European market.
The government transferred a hundred-hectare plot of land with all the existing buildings to the I-Group (legally called Big Service) to build a factory for the symbolic value of 1 lari. According to Levan Samkharauli’s forensic workplace appraisal, the market price of the aforementioned non-agricultural land amounted to 86 million laris. Under the terms of the privatisation, the company was to set up a company to produce electric cars within 24 months of the signing of the agreement. agreement and had to produce at least 5,000 electric cars, either through third parties, within 24 months and no more than 18 months. In addition, he had to employ another three hundred people for at least 18 months.
In 2020, the pandemic broke out, hampering the execution of the order and postponing the production of electric cars.
On 5 April 2021, the contract with the company was prolonged (source: iFact) and the factory’s construction time was extended to 36 months. According to the contract, the Kutaisi electric car factory was supposed to start the production of cars already in 2022.
In October 2021, Prime Minister Irakli Gharibashvili, on his stopover in Kutaisi, claimed that the task of the electric car had been hampered due to the pandemic and its implementation had been delayed.
In particular, the Prime Minister said: “I would like to tell the Kutaists that, in accordance with my instructions, we have already resumed negotiations with the investor. Much of the plant’s apparatus has already been delivered here and we will do our best in our strength to complete this project. Very soon we will start generating electric cars here and I will do my best to make that happen.
Two months after this statement, the then Minister of Economy, Natia Turnava, claimed that the government had stopped producing electric batteries at the factory, as the pandemic had hampered the structure of the electric car factory.
In April 2022, Irakli Gharibashvili again spoke about the electric car factory and said that the government is looking to renew the contract with the Chinese company and that there are active works in this direction.
It has been a year and a half since the Prime Minister’s last statement, although the electric car factory in the city of Kutaisi has not yet been built. In addition, there is no prospect of the cars starting production.
Taking into consideration the aforementioned circumstances, FactCheck concludes that Rostom Chkheidze’s statement is TRUE.
Author – Veriko Sukhiashvili
In the 2024 edition of POLITICO’s annual ranking of Europe’s most influential people, former Georgian Prime Minister Bidzina Ivanishvili is. . .
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