YEREVAN, February 1. / ARKA /. Head of an Armenian consumer watchdog praised today the government for selling the Vorotan hydropower plants to the New-York based group ContourGlobal.
Speaking at a news conference, Armen Poghosyan, head of an NGO protecting consumers’ rights, said it is reassuring that the American company is going to make investments to modernise the plant whose age is approaching 40.
He added that if the company meets its investment commitments, the transaction will be deemed effective. However, he claimed that the real cost of Vorotan HPP cascade is slightly higher of the selling price.
The company said it had bought the Vorotan Hydro plants for $180 million and planned to invest an additional $70 million over the next six years in a refurbishment program to modernize the plants and improve their operational performance, safety, reliability, and efficiency.
ContourGlobal expects the modernization to create 150 near-term jobs in addition to the 150 long-term technicians employed at the plants.
This acquisition represents the largest single U.S. private investment in Armenia's history and the first U.S. investment in Armenia's energy sector. The Vorotan Hydro Cascade accounts for roughly 15 percent of the installed capacity of Armenia's electricity system. -0-