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JOHN HEFFERN: AGREEMENT ON VOROTAN CASCADE OF HPPS TO BE SIGNED SHORTLY
by Marianna Lazarian
Friday, December 19, 13:29
U.S. Ambassador to Armenia John Heffern said in a press conference,
Friday, Armenia and U.S. will sign an agreement on the Vorotan Cascade
of HPPs shortly.
The ambassador called it a very important investment project for both
Armenia and the United States. Furthermore, he said, it will be the
biggest investment project of the U.S. in Armenia. Ambassador Heffern
said it is a big project cost 250 million dollars, which is several
times as big as the United States' previous investments in Armenia.
The diplomat is sure that the given agreement will enable Armenia
diversify its energy sector. He is sure that the agreement will be
of big importance for both the states.
Earlier, ArmInfo reported that on January 29, ContourGlobal and the
Government of Armenia announced that they have signed an agreement for
ContourGlobal to purchase and modernize the Vorotan Hydro Cascade,
a series of three hydroelectric power plants totaling 405 MW on the
Vorotan River in southern Armenia, for a purchase price of $180 million
USD. ContourGlobal pledges to invest $70 million over the next six
years in a refurbishment program to modernize the plants and improve
their operational performance, safety, reliability, and efficiency. The
Public Services Regulatory Commission has already approved the tariff
plan for the consistent exploitation of the Vorotan Cascade for the
coming 25 years by Contour Global Hydro Cascade.
Vorotan Cascade of HPPs consists of three hydro-power plants with a
total capacity of 404MW. The Cascade operates year-round thanks to
its two reservoirs and helps regulating the frequencies of power
exchange from Iran to Armenia and the vice versa. The designed
capacity of the Cascade is 1.16 bln kWh electricity annually. Vorotan
Cascade of HPPs CJSC was 100% state company under jurisdiction of
the Ministry of Energy and Natural Resources of Armenia before the
latest deal. The Vorotan Hydro Cascade is one of the largest and most
flexible power generating facilities in Armenia and the Caucasus. It
needs modernization and this acquisition represents the largest single
U.S. private investment in Armenia's history and the first U.S.
investment in Armenia's energy sector. ContourGlobal is a New York
based international power-generation company with approximately 3,500
MW in operations or under construction in 17 countries and on four
continents. ContourGlobal's 1,650 employees manage, own and operate
a portfolio of 33 power plants utilizing a wide range of fuel types
and technologies including renewable energy production based upon
Hydro, wind, solar and biomass, as well as an extensive fleet of
conventionally powered thermal power plants. In the wider Eastern
Europe area, ContourGlobal currently owns and operates approximately
1100 MW of power generation businesses in Bulgaria, Ukraine, Romania,
and Poland.
Meanwhile, this deal has been criticized in the political circles
in Armenia. It is widely rumored that the deal is shady and the
ex-minister of energy Armen Movsisyan will have illegal incomes from
it. In the political circles they explain Movsisyan's resignation
with that deal. There are even rumors that Movsisyan may be brought
responsible. The Armenian party has frozen the deal for several months.
http://www.arminfo.am/index.cfm?objectid=EBC52840-8769-11E4-BCF90EB7C0D21663
by Marianna Lazarian
Friday, December 19, 13:29
U.S. Ambassador to Armenia John Heffern said in a press conference,
Friday, Armenia and U.S. will sign an agreement on the Vorotan Cascade
of HPPs shortly.
The ambassador called it a very important investment project for both
Armenia and the United States. Furthermore, he said, it will be the
biggest investment project of the U.S. in Armenia. Ambassador Heffern
said it is a big project cost 250 million dollars, which is several
times as big as the United States' previous investments in Armenia.
The diplomat is sure that the given agreement will enable Armenia
diversify its energy sector. He is sure that the agreement will be
of big importance for both the states.
Earlier, ArmInfo reported that on January 29, ContourGlobal and the
Government of Armenia announced that they have signed an agreement for
ContourGlobal to purchase and modernize the Vorotan Hydro Cascade,
a series of three hydroelectric power plants totaling 405 MW on the
Vorotan River in southern Armenia, for a purchase price of $180 million
USD. ContourGlobal pledges to invest $70 million over the next six
years in a refurbishment program to modernize the plants and improve
their operational performance, safety, reliability, and efficiency. The
Public Services Regulatory Commission has already approved the tariff
plan for the consistent exploitation of the Vorotan Cascade for the
coming 25 years by Contour Global Hydro Cascade.
Vorotan Cascade of HPPs consists of three hydro-power plants with a
total capacity of 404MW. The Cascade operates year-round thanks to
its two reservoirs and helps regulating the frequencies of power
exchange from Iran to Armenia and the vice versa. The designed
capacity of the Cascade is 1.16 bln kWh electricity annually. Vorotan
Cascade of HPPs CJSC was 100% state company under jurisdiction of
the Ministry of Energy and Natural Resources of Armenia before the
latest deal. The Vorotan Hydro Cascade is one of the largest and most
flexible power generating facilities in Armenia and the Caucasus. It
needs modernization and this acquisition represents the largest single
U.S. private investment in Armenia's history and the first U.S.
investment in Armenia's energy sector. ContourGlobal is a New York
based international power-generation company with approximately 3,500
MW in operations or under construction in 17 countries and on four
continents. ContourGlobal's 1,650 employees manage, own and operate
a portfolio of 33 power plants utilizing a wide range of fuel types
and technologies including renewable energy production based upon
Hydro, wind, solar and biomass, as well as an extensive fleet of
conventionally powered thermal power plants. In the wider Eastern
Europe area, ContourGlobal currently owns and operates approximately
1100 MW of power generation businesses in Bulgaria, Ukraine, Romania,
and Poland.
Meanwhile, this deal has been criticized in the political circles
in Armenia. It is widely rumored that the deal is shady and the
ex-minister of energy Armen Movsisyan will have illegal incomes from
it. In the political circles they explain Movsisyan's resignation
with that deal. There are even rumors that Movsisyan may be brought
responsible. The Armenian party has frozen the deal for several months.
http://www.arminfo.am/index.cfm?objectid=EBC52840-8769-11E4-BCF90EB7C0D21663