U.S. takeover of Vorotan power plant in Armenia to be finalized in a week or two- minister

YEREVAN, May 13. / ARKA /. Armenian energy and natural resources minister Yervand Zakharyan told a news conference today that a landmark deal finalizing the sale of Vorotan Hydro Cascade to a US-based company ContourGloba will be signed in a week or two.

The minister said all the contentious issues which the original agreement had have been resolved and the new terms are ‘quite profitable for Armenia.”

The deal was signed on Jan. 29 2014 with ContourGlobal under which the US-based company is to purchase and modernize the series of hydropower plants along the Vorotan river, (known as the Vorotan Hydro Cascade), which produce a total of 405 megawatts of power in southern Armenia, for a purchase price of $180 million.

This will be 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 production system and provides sufficient energy to power 250,000 homes.

Under the terms of the agreement, ContourGlobal Hydro Cascade, a direct and wholly owned subsidiary of ContourGlobal, will own and operate the three hydroelectric facilities located on the Vorotan river and will supply power to the Armenian grid under a long-term power purchase agreement.

ContourGlobal will also invest $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.-0-