Acquired for a consideration of is one of $180m, the Vorotan Hydro Cascade is claimed to be the largest and most flexible power generating facilities in Armenia and the Caucuses.
As part of the acquisition deal, which represents the largest single US private investment in Armenia and the first US investment in Armenia’s energy sector, the company’s 100-owned subsidiary ContourGlobal Hydro Cascade will own and operate the three hydroelectric facilities.
The company will supply the plants’ output to the Armenian grid under a long-term power purchase deal.
ContourGlobal will undertake a refurbishment program over the next six years with an investment of $70m to modernize the plants in a bid to improve their performance, safety, reliability, and efficiency.
The refurbishment program is expected to create 150 near-term jobs and 150 long-term technicians at the plants.
ContourGlobal president and CEO Joseph Brandt said the signing of the agreement is the culmination of around two years of collaboration with the government of Armenia and its agencies.
"We are thrilled to have the opportunity to play an integral role in the Armenian power system and to make a significant and lasting contribution to a key part of the country’s infrastructure.
"I look forward to working together with the Government of Armenia towards a successful conclusion of this transaction," added Brandt.
Armenian Minister of Energy and Natural Resources Armen Movsisyan said the government has entered into the agreement with ContourGlobal.
"We are confident that ContourGlobal will successfully own, maintain, and operate this important power complex and are gratified by ContourGlobal’s planned investment, which will improve the stability, security, and performance of the Armenian power system for many years to come," added Movsisyan.
