Vorotan Power Plant Sale Nearly Complete

One of the three hydroelectric power stations on the Vorotan River (Photo: Photolur)
One of the three hydroelectric power stations on the Vorotan River (Photo: Photolur)

One of the three hydroelectric power stations on the Vorotan River (Photo: Photolur)

YEREVAN—Armenia’s Deputy Minister of Energy and Natural Resources Ara Simonyan told a meeting of Armenia’s National Assembly Tuesday that a landmark deal finalizing the sale of Armenia’s Vorotan Hydro Cascade to a US-based company, ContourGloba, will be signed within the next two to three days.

According to Simonyan, the Vorotan Cascade badly needs investments, and the government has not received any better proposals.

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.


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  1. John Timothy Pashayan said:

    once again the oligarchs of Armenia have sold out the Armenian people by selling this power plant to a US corporation. Do they think that they will provide .cheap electric rates for the people . The answer is obvious NO. This government is under control by ex KGB people.. After all why would these people give up their position in government just because the Russians left. What happen to the 300 hundred million loan that the IMF gave to Armenia. It was spent on Mansions exotic cars and pet zoos. Oh yes they also brought homes in other country’s. These people have no right to call themselves Armenians. I was in Armenia on September 23 1991 and saw the Russian troops leaving and said to my self finally we can now for the first have a free and Democratic country. But that never happen because of greed and the love of power and money. If these criminals really cared about he people then why is there no middle class to help them build a just society. Sense Independence the government sold most of its Armenian heritage to foreign investor. Shame on them It is I who is truly Armenian not them. After what our people went through with the Turkish genocide our country should have been the land of milk and honey. When there is no transparency there is no democracy its that simple. I stayed in Armenia for 6 weeks and went every where because my wife is from Armenia and I feel in love with my country. It hurts me to see what has happen this beautiful land.

    • John Timothy Pashayan said:

      Why don’t the Armenian government ask for help from the Russian government to help them to upgrade this power plant. Very simple American dollars went under the table and the rich got richer. America is still free because of the first two amendments freedom of speech and the right to bear arms which Armenia does not have. There were millions of Armenians around the world who would have helped their country but hey were denied this honor. To do this they the KGB would have had to relinquish their power and that would never happen.. So today we have a level of poverty that has not changed in 25 years and people barely making ends meet. So sad to see this happen too our people for we are one of the greatest nationality that has ever been on this earth

  2. John Timothy Pashayan said:

    once again the leader of Armenian have sold out the Armenian people for money. When will this government stop the selling of is infrastructure. Does this government realize that the power rates will go up after all this US company will want a return on its investment. This will be done by raising the rates to the people who already suffer from a government that is ran by ex KGB people. What happen to the 300 hundred million dollar loan that the IMF granted to Armenian. Why wasn’t this money used to rebuild the country. No it was stolen by the oligarchs who built mansions and created mini zoos in there estates where they live. It was used to buy homes in other country’s. The leaders at the top have no regards for their people. How dare they call them selves Armenians. Frauds all of them. I was in Armenia on September 23 1991 and saw the Russian leaving our country . At that time I as a second generation Armenian watching the people rejoice I felt that there would be a new beginning for this beautiful land of ours.