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ARMENIA SET TO SELL POWER PLANTS TO US INVESTOR
Business New Europe
June 13 2013
bne
June 13, 2013
The Armenian government is in talks with US-based power company
ContourGlobal over the sale of three major hydropower plants that
together account for almost 40% of the country's capacity.
ContourGlobal said in a statement quoted by Armenian media on June 12
that negotiations are at an advanced stage and commercial terms are
being finalised. The company added that the purchase price for the
three power plants on the Vorotan River in the southeastern Syunik
province would be "very significant".
Financing for the deal "will be sourced from outside of Armenia using
a combination of ContourGlobal's own resources and those of prestigious
international financial institutions," the statement continued. The US
Overseas Private Investment Corporation (OPIC) and the International
Finance Corporation are expected to support the deal.
ContourGlobal plans to invest in renovation of the generating equipment
at the three power plants, which were built 30-40 years ago, and
have suffered from a lack of investment in recent years. However,
the three plants have combined capacity of more than 400MW, almost as
much as the Metsamor nuclear power plant which accounts for around 40%
of Armenia's electricity generation.
Armenia's Energy Minister Armen Movsisian recently denied that
Yerevan planned to sell the hydropower plants to Russia in return
for a discount on gas imports. Should the deal with ContourGlobal
go ahead it will see a major US investment into a country and sector
very much seen as Moscow's territory.
Complicating matters further, Yerevan is also looking at the
possibility of importing gas from Iran, following a hike in Russian
gas prices. Iranian gas exports face US-led international sanctions
due to concerns over Tehran's nuclear programme.
http://www.bne.eu/story5071/Armenia_set_to_sell_power_plants_to_US_investor
Business New Europe
June 13 2013
bne
June 13, 2013
The Armenian government is in talks with US-based power company
ContourGlobal over the sale of three major hydropower plants that
together account for almost 40% of the country's capacity.
ContourGlobal said in a statement quoted by Armenian media on June 12
that negotiations are at an advanced stage and commercial terms are
being finalised. The company added that the purchase price for the
three power plants on the Vorotan River in the southeastern Syunik
province would be "very significant".
Financing for the deal "will be sourced from outside of Armenia using
a combination of ContourGlobal's own resources and those of prestigious
international financial institutions," the statement continued. The US
Overseas Private Investment Corporation (OPIC) and the International
Finance Corporation are expected to support the deal.
ContourGlobal plans to invest in renovation of the generating equipment
at the three power plants, which were built 30-40 years ago, and
have suffered from a lack of investment in recent years. However,
the three plants have combined capacity of more than 400MW, almost as
much as the Metsamor nuclear power plant which accounts for around 40%
of Armenia's electricity generation.
Armenia's Energy Minister Armen Movsisian recently denied that
Yerevan planned to sell the hydropower plants to Russia in return
for a discount on gas imports. Should the deal with ContourGlobal
go ahead it will see a major US investment into a country and sector
very much seen as Moscow's territory.
Complicating matters further, Yerevan is also looking at the
possibility of importing gas from Iran, following a hike in Russian
gas prices. Iranian gas exports face US-led international sanctions
due to concerns over Tehran's nuclear programme.
http://www.bne.eu/story5071/Armenia_set_to_sell_power_plants_to_US_investor