YEREVAN (ARKA)—Armenia’s Public Services Regulatory Commission (PSRC) has granted a license to US-based Contour Global Hydro Cascade, the new owner of Vorotan hydropower plants in Armenia, for the production of electricity for a period of 25 years.
The agreement on the sale of the facility to ContourGlobal was finalized after more than a year of talks and deliberations on June 8.
Under the agreement, initially signed on January 29, 2014, ContourGlobal is to 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. The cost of the deal is $180 million.
The deal is 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 power to 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 150 long-term technicians.