U.S. ContourGlobal company and the Republic of Armenia announced the completion of the asset acquisition of Armenia’s Vorotan Hydro Power Plant (HPP), which consists of three separate power plants with overall electrical capacity of 405 MWt.
The International Finance Corporation (“IFC”), a member of the World Bank Group, has acquired a 20% interest in ContourGlobal Hydro Cascade to help acquire, operate, and rehabilitate the Vorotan Hydropower Cascade, ContourGlobal press-release reads. The project aims to enhance electricity supply reliability and strengthen the country’s power sector.
The acquisition is the largest single U.S. private investment in Armenia’s history and the first U.S. investment in the country’s energy sector. The Vorotan Hydro Cascade accounts for roughly 15% of the installed capacity of Armenia’s electricity system.
Under the terms of the agreement, ContourGlobal Hydro Cascade will own and operate the three hydroelectric facilities located on the Vorotan River, supplying power to the Armenian grid pursuant to a long-term power purchase agreement. ContourGlobal will invest over EUR 50 million during the next six years in the framework of a program to modernize the plants and improve their operational performance, safety, reliability and efficiency. ContourGlobal expects the modernization to create 150 short-term jobs in addition to the 150 long-term technicians employed at the plants.
Joseph Brandt, President and CEO of ContourGlobal stated that the company is committed to being an effective partner for Armenia.
“We are very pleased to announce the closing of the Vorotan transaction and that IFC will join us as an equity partner. We thank the Government for the trust they have placed in us and look forward to making a significant and lasting contribution to a key part of the country's infrastructure. We also are very pleased to build upon our nearly decade-long cooperation with the IFC investing together in development projects across the globe,” Brandt said.