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WON'T VOROTAN HPP COMPLEX BE RESOLD AT A HIGHER PRICE?
February 11 2014
The 3 gas agreements on 20% government share of "ARG" with Russia,
which the opposition MPs qualified as a betrayal and loss of national
security, dignity and statehood, the community still not completely
digesting this deals, the government sold another strategic object
of energy: "Vorotan" HPP Complex. Selling Vorotan to Americans,
the government proudly announced that it is the biggest deal in the
region that was sold for 180 million dollars, and that still 70 million
dollars will be invested, and this is presented in a way that it seems
to be an unprecedented profitable deal for Armenia. Did the sale of
the strategic object and being deprived of energy independence worth
the money? "In my opinion, it did not worth," said Hrant Bagratyan,
NA MP, the former Prime Minister of Armenia, in the conversation with
Aravot.am. "There are different ways of calculating the price."Vorotan"
has 450 megawatts, cheap electricity. 450 MW, 3 HPP and to build 3
reservoirs require at least 1 billion dollars. As for the 70 million
dollar investment, even without it, the Cascade would make the same
investment on the account of profits and depreciation."
As for the so-called "the deal of the century," Mr. Bagratyan raised
a few questions. With regard to "Vorotan", we are concerned about the
sale price - 180 million dollars, that the money has not entered the
budget, it will be disposed by "Vorotan" HPP, and the fact that after
the sale of the property, the old financial liabilities over "Vorotan"
HPP are gone. Thus, the sale of the huge and very popular economic
complex will give nothing to us. In addition, we are concerned about
whether or not this object will not be resold at a higher price. The
government has one argument: the value of the deal is that there is
a diversification; these powers have nothing to do with Russians. I
do not understand if this is the problem, reject Russians too.
Ultimately, we are a sovereign state." Recently, the "appetite" of
different change of regime forces has grown up, both, the opposition
and worriers of freedom are talking about regime change. In case of
regime change, it would be possible to return the strategic objects
to Armenia, or, for example, we lost "Vorotan" forever, or at least
to make amendments in gas agreements for the benefit of Armenia,
in response to these questions, Mr. Bagratyan said, "Nothing will be
returned. I would not use the words of losing forever. But we need to
think about the new energy based on the sun and the wind. As for the
amendments in gas agreements, I do not know." In other words, even
in case of having new government, Armenia is unlikely to have energy
independence for at least 3 decades. To remind that on January 29, the
Government of Armenia and ContourGlobal Hydro Cascade signed a sale
and purchase agreement on the sale of Vorotan HPP complex. According
to the deal, the American company is obliged to invest 70 million
dollars over the next 6 years in a refurbishment program to modernize
the plants. The investment will be made in accordance with the
previously submitted capital investment and expenditure plan, which
will be discussed and agreed upon with the Public Services Regulatory
Commission. The latter has also confirmed the Tariff Plan, according
to which, the company will dispose and operate "Vorotan" HPP complex
for 25 years.
Nelly BABAYAN
Read more at: http://en.aravot.am/2014/02/11/163762/
February 11 2014
The 3 gas agreements on 20% government share of "ARG" with Russia,
which the opposition MPs qualified as a betrayal and loss of national
security, dignity and statehood, the community still not completely
digesting this deals, the government sold another strategic object
of energy: "Vorotan" HPP Complex. Selling Vorotan to Americans,
the government proudly announced that it is the biggest deal in the
region that was sold for 180 million dollars, and that still 70 million
dollars will be invested, and this is presented in a way that it seems
to be an unprecedented profitable deal for Armenia. Did the sale of
the strategic object and being deprived of energy independence worth
the money? "In my opinion, it did not worth," said Hrant Bagratyan,
NA MP, the former Prime Minister of Armenia, in the conversation with
Aravot.am. "There are different ways of calculating the price."Vorotan"
has 450 megawatts, cheap electricity. 450 MW, 3 HPP and to build 3
reservoirs require at least 1 billion dollars. As for the 70 million
dollar investment, even without it, the Cascade would make the same
investment on the account of profits and depreciation."
As for the so-called "the deal of the century," Mr. Bagratyan raised
a few questions. With regard to "Vorotan", we are concerned about the
sale price - 180 million dollars, that the money has not entered the
budget, it will be disposed by "Vorotan" HPP, and the fact that after
the sale of the property, the old financial liabilities over "Vorotan"
HPP are gone. Thus, the sale of the huge and very popular economic
complex will give nothing to us. In addition, we are concerned about
whether or not this object will not be resold at a higher price. The
government has one argument: the value of the deal is that there is
a diversification; these powers have nothing to do with Russians. I
do not understand if this is the problem, reject Russians too.
Ultimately, we are a sovereign state." Recently, the "appetite" of
different change of regime forces has grown up, both, the opposition
and worriers of freedom are talking about regime change. In case of
regime change, it would be possible to return the strategic objects
to Armenia, or, for example, we lost "Vorotan" forever, or at least
to make amendments in gas agreements for the benefit of Armenia,
in response to these questions, Mr. Bagratyan said, "Nothing will be
returned. I would not use the words of losing forever. But we need to
think about the new energy based on the sun and the wind. As for the
amendments in gas agreements, I do not know." In other words, even
in case of having new government, Armenia is unlikely to have energy
independence for at least 3 decades. To remind that on January 29, the
Government of Armenia and ContourGlobal Hydro Cascade signed a sale
and purchase agreement on the sale of Vorotan HPP complex. According
to the deal, the American company is obliged to invest 70 million
dollars over the next 6 years in a refurbishment program to modernize
the plants. The investment will be made in accordance with the
previously submitted capital investment and expenditure plan, which
will be discussed and agreed upon with the Public Services Regulatory
Commission. The latter has also confirmed the Tariff Plan, according
to which, the company will dispose and operate "Vorotan" HPP complex
for 25 years.
Nelly BABAYAN
Read more at: http://en.aravot.am/2014/02/11/163762/