Tweet
Investment or Takeover? - U.S. Energy Giant to Pump $180 Million into
Armenia's Hydro-Power Sector
22:41, November 23, 2013
ContourGlobal, a multi-million dollar U.S. company that develops,
acquires and operates electric-power resources around the world, has
announced that it will invest $180 million in Armenia's hydro-power
sector.
This was the number one news item emanating from yesterday's
U.S.-Armenia Joint Economic Task Force (USATF) meeting in Washington,
D.C.
While yesterday's announcement only talked about ContourGlobal's
`investment' in Armenia's hydro-power sector, in June of this year the
company issued a statement saying that it was engaged in `advanced
negotiations' with the Armenian government regarding the takeover of
plants on the Vorotan River in Armenia's Syunik Province.
While the Armenian Ministry of Energy initially declined to comment
about the possible takeover by ContourGlobal, just one day later the
government confirmed that it was negotiating with the U.S. company
regarding the sale of the state owned power plants on the Vorotan.
At the time, Energy Minister Armen Movsisyan failed to clarify whether
or not a deal to privatize the plants was in the offing, claiming that
the government hadn't reached a final decision and that other
companies had expressed an interest in the Vorotan facility.
So far, the Armenian government has remained tight lipped about
yesterday's announcement in Washington, D.C/
The Vorotan Complex, built during the late Soviet period, has an
operational capacity of over 400 megawatts, making it almost as
powerful as the Metsamor nuclear facility.
Yesterday's meeting, attended by an Armenian delegation headed by
Minister of Finance Davit Sargsyan and Armenia Ambassador to the U.S.
Tatoul Margaryan, was the 22nd annual gathering of the USATF which
seeks to promote trade and investment between the U.S. and Armenia.
According to the U.S. Department of State website: `This investment,
which is expected to be partially financed by the U.S. Overseas
Private Investment Corporation, represents the largest U.S. private
investment in Armenia's history, and the first U.S. investment in
Armenia's critical energy sector.'
The U.S. was represented by Deputy Assistant Secretary of State for
European and Eurasian Affairs Eric Rubin, USAID Assistant
Administrator Paige Alexander, and Coordinator of Assistance for
Europe Daniel Rosenblum.
The United States highlighted Armenia's selection as one of 20 focus
countries for the U.S. Agency for International Development's (USAID)
Science, Technology, Innovation, and Partnerships.
Through this initiative, both countries have agreed to undertake a
signature effort in the areas of clean energy and water.
Armenia's Hydro-Power Sector
22:41, November 23, 2013
ContourGlobal, a multi-million dollar U.S. company that develops,
acquires and operates electric-power resources around the world, has
announced that it will invest $180 million in Armenia's hydro-power
sector.
This was the number one news item emanating from yesterday's
U.S.-Armenia Joint Economic Task Force (USATF) meeting in Washington,
D.C.
While yesterday's announcement only talked about ContourGlobal's
`investment' in Armenia's hydro-power sector, in June of this year the
company issued a statement saying that it was engaged in `advanced
negotiations' with the Armenian government regarding the takeover of
plants on the Vorotan River in Armenia's Syunik Province.
While the Armenian Ministry of Energy initially declined to comment
about the possible takeover by ContourGlobal, just one day later the
government confirmed that it was negotiating with the U.S. company
regarding the sale of the state owned power plants on the Vorotan.
At the time, Energy Minister Armen Movsisyan failed to clarify whether
or not a deal to privatize the plants was in the offing, claiming that
the government hadn't reached a final decision and that other
companies had expressed an interest in the Vorotan facility.
So far, the Armenian government has remained tight lipped about
yesterday's announcement in Washington, D.C/
The Vorotan Complex, built during the late Soviet period, has an
operational capacity of over 400 megawatts, making it almost as
powerful as the Metsamor nuclear facility.
Yesterday's meeting, attended by an Armenian delegation headed by
Minister of Finance Davit Sargsyan and Armenia Ambassador to the U.S.
Tatoul Margaryan, was the 22nd annual gathering of the USATF which
seeks to promote trade and investment between the U.S. and Armenia.
According to the U.S. Department of State website: `This investment,
which is expected to be partially financed by the U.S. Overseas
Private Investment Corporation, represents the largest U.S. private
investment in Armenia's history, and the first U.S. investment in
Armenia's critical energy sector.'
The U.S. was represented by Deputy Assistant Secretary of State for
European and Eurasian Affairs Eric Rubin, USAID Assistant
Administrator Paige Alexander, and Coordinator of Assistance for
Europe Daniel Rosenblum.
The United States highlighted Armenia's selection as one of 20 focus
countries for the U.S. Agency for International Development's (USAID)
Science, Technology, Innovation, and Partnerships.
Through this initiative, both countries have agreed to undertake a
signature effort in the areas of clean energy and water.