US-based power-generation firm ContourGlobal has acquired the 405MW Vorotan hydroelectric facility in Armenia.
The Vorotan facility has three hydroelectric power generation plants on the Vorotan River in southern Armenia that accounts for about 15% of the country’s total installed capacity.
The three plants will be owned and operated by ContourGlobal subsidiary ContourGlobal Hydro Cascade.
ContourGlobal will deliver power to the Armenian grid under a long-term power purchase agreement.
The company will invest over €50m in the next six years in a refurbishment program to upgrade the plants and improve their operational performance and efficiency.
International Finance Corporation (IFC), a member of the World Bank Group, has acquired a 20% stake in ContourGlobal Hydro Cascade.
IFC director for Europe and Central Asia Tomasz Telma said: "The planned rehabilitation of the Vorotan Cascade will help improve access to energy and support Armenia’s energy self-sufficiency".
Armenia Minister of Energy and Natural Resources Yervand Zakharyan said: "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."
ContourGlobal has about 4GW of projects in operations or under construction in 20 countries on four continents.