ContourGlobal completes purchase of Armenia hydropower asset

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ContourGlobal completes purchase of Armenia hydropower asset

ContourGlobal has completed a takeover deal to acquire Vorotan Hydroelectric Complex, which is composed by three hydro-power plants (HPP) located on the Vorotan River in Syunik, Armenia.

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:

  • Tatev HPP, which is the pilot hydro power station in the complex and the highest-head HPP in the territory of former USSR. The station has 3 aggregates with 157.2 thousand kWh total and 670 million kWh rated annual power generation capacity.
  • Shamb HPP, wich has the highest power generation capacity among the hydro power stations of the complex (171 MW installed capacity).
  • Spandaryan HPP, which is the first step of the complex. The power plant has 76 MW total and 170 million kWh rated annual power generation capacity.

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:

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