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ARF-D Comments On Vorotan HPP Privatization Plan
http://www.arfd.info/2013/06/12/arf-d-comments-on-vorotan-hpp-privatization-plan/
June 12, 2013
(azatutyun.am, June 12) - A U.S. energy company announced on Wednesday
that it is close to buying three big hydroelectric stations generating
a considerable part of Armenia's electricity.
The New York-based ContourGlobal said it is engaged in `advanced
negotiations' with the Armenian government over the takeover of the
plants built along the fast-flowing Vorotan river in the southeastern
Syunik province.
`While commercial terms are still being finalized the purchase price
will be very significant and all of the funds will be sourced from
outside of Armenia using a combination of ContourGlobal's own
resources and those of prestigious international financial
institutions,' it said in a statement. They include the U.S. Overseas
Private Investment Corporation (OPIC) and the International Finance
Corporation, a World Bank Group division, according to the statement.
`In addition to the full purchase price, ContourGlobal will be
committing to invest further in a major overhaul of the main
generating equipment at the power plants,' added the company. `This
investment is urgently needed given the age of the plants and the
under investment in recent years.'
Constructed in the 1970s and 1980s, the Vorotan Complex cascade is the
largest power-generating facility still owned by the Armenian state.
With an operational capacity of over 400 megawatts, it is nearly as
powerful as the Metsamor nuclear plant that accounts for roughly 40
percent of Armenian electricity production.
The Soviet-era hydroelectric plants were supposed to be refurbished
with 51 million euros ($66 million) in loans that were provided by a
German development bank to Armenia in 2010. Officials said at the time
that the modernization will be complete by 2015.
The Armenian Ministry of Energy declined to comment on their possible
takeover by ContourGlobal. The Vorotan Complex management also
declined a comment when contacted by RFE/RL's Armenian service
(Azatutyun.am).
Energy Minister Armen Movsisian did not deny the plants' impending
privatization when he was confronted by opposition lawmakers in the
Armenian parliament on Wednesday.
ContourGlobal operates 33 power plants in 17 countries around the
world. Its operational revenues exceeded $1 billion in 2011.
In recent weeks the Vorotan cascade has been at the center of media
speculation resulting from ongoing Russian-Armenian negotiations over
the price of Russian natural delivered to Armenia. There have been
suggestions that Yerevan is ready to grant Russia's Gazprom giant
control over the facility in return for a 30 percent price discount.
Energy Minister Movsisian has dismissed this speculation.
Energy Minister Is Lying, Says Minasyan
News. am reports that during the Parliament's debate about the `Report
on the Execution of the RA State Budget for 2013', ARF-D MP, Artsvik
Minasyan said that the Minister for Energy and National Resources,
Armen Movsissyan is not aware of the situation and has made false and
incorrect statements at the Steering Committee sessions regarding the
Vorotan hydropower plant. Minasyan said that the Vorotan HPP was
removed from the privatization plan that was approved in 2006-2007
while the Minister has included it.
The ARF-D member emphasized that after reviewing the price of
electricity, Vorotan HPP turns into a hyperprofitable corporation, the
privatization of which would be harmful.
According to Minasyan, the Vorotan Complex has a capacity of 405 MW,
half of the nuclear power plant capacity and in general it is of vital
importance for the economy of Armenia.
From: Baghdasarian
http://www.arfd.info/2013/06/12/arf-d-comments-on-vorotan-hpp-privatization-plan/
June 12, 2013
(azatutyun.am, June 12) - A U.S. energy company announced on Wednesday
that it is close to buying three big hydroelectric stations generating
a considerable part of Armenia's electricity.
The New York-based ContourGlobal said it is engaged in `advanced
negotiations' with the Armenian government over the takeover of the
plants built along the fast-flowing Vorotan river in the southeastern
Syunik province.
`While commercial terms are still being finalized the purchase price
will be very significant and all of the funds will be sourced from
outside of Armenia using a combination of ContourGlobal's own
resources and those of prestigious international financial
institutions,' it said in a statement. They include the U.S. Overseas
Private Investment Corporation (OPIC) and the International Finance
Corporation, a World Bank Group division, according to the statement.
`In addition to the full purchase price, ContourGlobal will be
committing to invest further in a major overhaul of the main
generating equipment at the power plants,' added the company. `This
investment is urgently needed given the age of the plants and the
under investment in recent years.'
Constructed in the 1970s and 1980s, the Vorotan Complex cascade is the
largest power-generating facility still owned by the Armenian state.
With an operational capacity of over 400 megawatts, it is nearly as
powerful as the Metsamor nuclear plant that accounts for roughly 40
percent of Armenian electricity production.
The Soviet-era hydroelectric plants were supposed to be refurbished
with 51 million euros ($66 million) in loans that were provided by a
German development bank to Armenia in 2010. Officials said at the time
that the modernization will be complete by 2015.
The Armenian Ministry of Energy declined to comment on their possible
takeover by ContourGlobal. The Vorotan Complex management also
declined a comment when contacted by RFE/RL's Armenian service
(Azatutyun.am).
Energy Minister Armen Movsisian did not deny the plants' impending
privatization when he was confronted by opposition lawmakers in the
Armenian parliament on Wednesday.
ContourGlobal operates 33 power plants in 17 countries around the
world. Its operational revenues exceeded $1 billion in 2011.
In recent weeks the Vorotan cascade has been at the center of media
speculation resulting from ongoing Russian-Armenian negotiations over
the price of Russian natural delivered to Armenia. There have been
suggestions that Yerevan is ready to grant Russia's Gazprom giant
control over the facility in return for a 30 percent price discount.
Energy Minister Movsisian has dismissed this speculation.
Energy Minister Is Lying, Says Minasyan
News. am reports that during the Parliament's debate about the `Report
on the Execution of the RA State Budget for 2013', ARF-D MP, Artsvik
Minasyan said that the Minister for Energy and National Resources,
Armen Movsissyan is not aware of the situation and has made false and
incorrect statements at the Steering Committee sessions regarding the
Vorotan hydropower plant. Minasyan said that the Vorotan HPP was
removed from the privatization plan that was approved in 2006-2007
while the Minister has included it.
The ARF-D member emphasized that after reviewing the price of
electricity, Vorotan HPP turns into a hyperprofitable corporation, the
privatization of which would be harmful.
According to Minasyan, the Vorotan Complex has a capacity of 405 MW,
half of the nuclear power plant capacity and in general it is of vital
importance for the economy of Armenia.
From: Baghdasarian