American Company Buys Armenia’s Vorotan Hydro Power Plant

On Wednesday an agreement was signed between the Government of Armenia, ContourGlobal Hydro Cascade (a subsidiary of ContourGlobal), and CG Solutions Global Holding Company to purchase and modernize the Vorotan Hydro Power Plant Cascade for $180 million.

The signing ceremony was held at the Prime Minister’s office and was signed by Armen Movsisyan, Minister of Energy and Natural Resources of Armenia, and Garry Levesley, Executive Vice President and Regional CEO of ContourGlobal Eastern Europe.

Prime Minister Tigran Sargsyan and Garry Levesley expressed their satisfaction over the deal and stressed its importance in Armenia’s energy sector.  “We understand what kind of responsibility we are taking upon ourselves. We will do our best to contribute to Armenia’s energy security,” noted Levesley. In his words this deal can help further foster more Western investment in Armenia.

US Ambassador to Armenia John Heffern, who was also present at the ceremony, stressed the importance of this deal and how it will strengthen and develop US-Armenian relations.

This acquisition represents the largest American private investment in Armenia's history and the first U.S. investment in Armenia's energy sector

Negotiations for the purchase of Vorotan by ContourGlobal had started in June 2013 and plans for the purchase were announced in November of that year by the U.S. State Department. According to this agreement, ContourGlobal Hydro Cascade will own and operate the hydroelectric facilities of the plant and will supply power to Armenia. The company will also invest $70 million over the next six years to refurbish and modernize the plant. According to the company the new Vorotan will create 150 short-term and 150 long-term positions at the plant.

The Vorotan Hydro Plant, which was built in 1954, accounts for 15% of Armenia’s electricity supply and provides power to around 250,000 homes. The 450 MW plant is composed of three hydroelectric facilities – Spandaryan, Shambi and Tatev – located on the Vorotan River in southern Armenia.