Israeli construction company Ashtrom International Ltd is suing the Millennium Challenge Georgia State Fund, demanding to stop the confiscation of assurances granted by the Israeli side in 2008, Business Georgia reports.
102.2 million dollars were allocated by the USA to help Georgia reconstruct the Samtshe-Dzavahetyy highway. This reconstruction was aimed at improving connections between Georgia and Armenia and on to Iran. Ashtrom International Ltd. won the international tender to realise the project and started work in 2008.
However, Georgian media declared that the Israeli company didn't observe the terms of the agreement and was delaying the work, so it was to be replaced by the German-Georgian Company Papenburg Black-C Group.
Ashtrom International Ltd, in its turn, accused the Georgian architect who created the projects for the construction in question of incompetence and the authorities of being rude and uncooperative. Nevertheless, the company managed to fulfill 90% of the project.
Millennium Challenge Georgia declared its intention to confiscate all bank assurances and leave all construction to itself, leading the Israeli company to address the Tel Aviv Court.
