Through the transaction ContourGlobal has become the first Western firm to acquire a major stake in Armenia’s energy sector, largely dominated by Russian groups.
Under the terms of the US$250 million agreement ContourGlobal will pay US$180 million for the hydro-power asset and will invest US$70 million during the next five years to modernize the facilities.
Last January the Armenian Minister of Energy and Natural Resources, Yervand Zakharyan announced that the Armenian government and ContourGlobal were about to seal the renegotiated agreement.
The hydro-power assets includes:
In December of 1970 the firstling – Tatev power plant – was put into operation, followed by Shamb HPP in 1978 and Spandaryan station in 1989.
In terms of expanded economic ties between the two countries, the Prime Minister Hovik Abrahamyan highlighted the signing of the Trade and Investment Framework Agreement in Washington, DC in the month of May, which creates favorable conditions for attracting investment, promoting trade and trade turnover.
We have recently reported about several hydro-power projects globally: