ARMENIAN AUTHORITIES AND CONTOURGLOBAL CONTINUE TALKS TO FINALIZE VOROTAN CASCADE DEAL, AMBASSADOR

YEREVAN, September 11. / ARKA /. U.S. ambassador to Armenia, John
Heffern, said today Armenian authorities and ContourGlobal, a New
York based international power-generation company, continue talks to
finalize an agreement ContourGlobal and Armenia’s government signed
on January 29 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.

This acquisition, if successfully finalized, will represent 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.

“We fully support the negotiation process and we hope that this
transaction will be completed successfully and satisfy both sides,”
the ambassador told journalists on Thursday.

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.

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From: Emil Lazarian | Ararat NewsPress