YEREVAN (Arka)—An agreement for Armenia’s Vorotan Hydropower Cascade to be sold to US-based company ContourGlobal has been finalized after more than a year of talks and deliberations. The revised and amended agreement about the sale of the hydro plant complex was signed in Yerevan on Monday, the Armenian prime minister’s press office reported.
The signatories were Armenian minister of energy and natural resources Yervand Zakharyan, general director of Vorotan Cascade of Hydroelectric Power Plants Sasun Khachatryan, authorized representative of Contour Global Hydro Cascade and Contour Global Terra Holdings and CEO of CG Solutions Global Holding Company Joseph Brandt.
In January of 2014, ContourGlobal and the Government of Armenia announced that they signed an agreement for ContourGlobal to purchase and modernize the Vorotan Hydro Cascade, a series of three hydroelectric power plants along the Vorotan River producing a total of 405 megawatts of electricity, for a purchase price of $180 million. ContourGlobal has pledged to 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. The Public Services Regulatory Commission has already approved the tariff plan for the consistent exploitation of the Vorotan Cascade for the coming 25 years by ContourGlobal.
The Armenian government of Prime Minister Hovik Abrahamian stalled the deal soon after taking office. Analysts have speculated that the deal may have angered Moscow, who is the sole foreign owner of most of Armenia’s energy infrastructure.