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Government approves amended agreement on privatization of Vorotan power plant
YEREVAN, February 19. / ARKA /. The Armenian government has approved today the updated and amended agreement on the privatization of Vorotan cascade of hydropower plants, signed last year with a US-based company.
The deal was signed on January 29 with ContourGlobal, a US-based company under which ContourGlobal is to purchase and modernize the Vorotan Hydro Cascade, a series of three hydroelectric power plants totaling 405 MW on the Vorotan River in southern Armenia, for a purchase price of $180 million. But the deal was not finalized. Officials would say it would be finalized after the sides reconciled some technical and pricing issues.
Energy and natural resources minister Yervand Zakharyan said at a Cabinet session today that the contract was revised 'for a balanced regulation of relations between the sides.'
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 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.
Though foreign ownership of the country's infrastructure is not usually something to be celebrated, it is at least a positive thing that it is not owned by Russia as it creates some diversification, and small amount of independence from total Russian control.
Government approves amended agreement on privatization of Vorotan power plant
YEREVAN, February 19. / ARKA /. The Armenian government has approved today the updated and amended agreement on the privatization of Vorotan cascade of hydropower plants, signed last year with a US-based company.
The deal was signed on January 29 with ContourGlobal, a US-based company under which ContourGlobal is to purchase and modernize the Vorotan Hydro Cascade, a series of three hydroelectric power plants totaling 405 MW on the Vorotan River in southern Armenia, for a purchase price of $180 million. But the deal was not finalized. Officials would say it would be finalized after the sides reconciled some technical and pricing issues.
Energy and natural resources minister Yervand Zakharyan said at a Cabinet session today that the contract was revised 'for a balanced regulation of relations between the sides.'
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 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.
Though foreign ownership of the country's infrastructure is not usually something to be celebrated, it is at least a positive thing that it is not owned by Russia as it creates some diversification, and small amount of independence from total Russian control.
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