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City Park Asks Tbilisi Mayor to Delay Abolition of Deal

Thursday, March 22
Parking regulatory company C.T. Park, which has been managing parking system in the capital since 2007, asks Tbilisi Mayor Kakha Kaladze to postpone abolition of the deal until the court disputes are over.

Kaladze announced about his decision on abolishing the contract with the company on March 12, saying the company does not fulfill its obligations properly. He added the agreement would be annulled on April 10.

However, the company believes it will be fair if the Mayor delays the process until the court makes its decision over the case.

“We have appealed the mayor’s decision about improper fulfillment of obligations from our side. We think that the agreement can be cancelled only after the court verdict,” the lawyer of C.T. Park Natia Tskepladze stated.

The lawyer said they filed a statement to the City Hall, asking for postponement of contract abolition.

Kaladze responded to the request of the company. He says the decision has been made and it will not be reversed.

“There is no court dispute and no talks about postponing our decision will take place. Everything is already decided,” he stressed.

The contract between City Park and Tbilisi Mayor’s Office was signed in 2007 and was supposed to last until 2022. According to the international auditing company Ernst & Young, the annulment of the agreement will cost the Mayor’s office 25 million GEL to pay for the compensation.

However, Deputy Tbilisi Mayor, Irakli Khmaladze said the Mayor’s Office will not have to pay any compensation as it has grounded arguments that the company was not properly fulfilling its obligations.

The company owners, David Pila and Natan Shorer - released the statement on March 14, saying the Mayor’s decision is “an illegal, premeditated political act and the latest example of how the Georgian government treats foreign investors. “