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Interfax, Russia
July 25 2014
Armenia may abort sale of Vorotan Cascade of HPPs to U.S. company - PM
YEREVAN. July 25
Armenia may abort the sale of the Vorotan Cascade of Hydropower Plants
to the U.S. company ContourGlobal, as the deal contains some clauses
unacceptable to Yerevan, Armenian Prime Minister Hovik Abrahamyan told
journalists on Friday.
In particular, the Armenian government disagrees with the cascade
profitability threshold of 23.5% as being too high, he said.
"The 23.5% profitability threshold is too high, and I am personally
against it. There can be no deal in which a potential buyer would have
such profitability. There has been no such a deal in our country,"
Abrahamyan said.
The prime minister denied media reports alleging that the government
is considering the annulment of the deal with the U.S. company and the
cascade's transfer to Russia.
The government attaches great significance to U.S. investments and is
doing all it can to make sure that the deal is completed, but this
should be done in favor of the country's interests, he said.
"We have put forward some terms and conditions for the Americans, and
if they accept them, the deal will take place, and if they don't, it
won't, but we won't transfer the cascade to Russia," he said.
It was reported earlier that the Armenian government had sold 100%
shares in the Vorotan Cascade of Hydropower Plants to ContourGlobal
Hydrocascade, a ContourGlobal subsidiary, for $180 million. The
purchase and sale contract was signed on January 29, 2014, but the
deal has not yet been completed legally.
The investor committed to invest about $70 million in the cascade's
maintenance and modernization within the next six years. The Armenian
Public Services Regulation Commission endorsed the tariff plan the
company would have to adhere within the next 25 years.
ContourGlobal is headquartered in New York, and its assets include 33
power plants in 17 countries with aggregate capacity of 3,500 MWt. The
company also owns a number of wind and solar power plants.
The Vorotan Cascade of Hydropower Plants includes the Spandarian HPP
(76 MWt), Shamb HPP (171 MWt), and Tatev HPP (157.2 MWt). The cascade
generates about 16% of all power in the country and about half of
power generated by all Armenian HPPs.
July 25 2014
Armenia may abort sale of Vorotan Cascade of HPPs to U.S. company - PM
YEREVAN. July 25
Armenia may abort the sale of the Vorotan Cascade of Hydropower Plants
to the U.S. company ContourGlobal, as the deal contains some clauses
unacceptable to Yerevan, Armenian Prime Minister Hovik Abrahamyan told
journalists on Friday.
In particular, the Armenian government disagrees with the cascade
profitability threshold of 23.5% as being too high, he said.
"The 23.5% profitability threshold is too high, and I am personally
against it. There can be no deal in which a potential buyer would have
such profitability. There has been no such a deal in our country,"
Abrahamyan said.
The prime minister denied media reports alleging that the government
is considering the annulment of the deal with the U.S. company and the
cascade's transfer to Russia.
The government attaches great significance to U.S. investments and is
doing all it can to make sure that the deal is completed, but this
should be done in favor of the country's interests, he said.
"We have put forward some terms and conditions for the Americans, and
if they accept them, the deal will take place, and if they don't, it
won't, but we won't transfer the cascade to Russia," he said.
It was reported earlier that the Armenian government had sold 100%
shares in the Vorotan Cascade of Hydropower Plants to ContourGlobal
Hydrocascade, a ContourGlobal subsidiary, for $180 million. The
purchase and sale contract was signed on January 29, 2014, but the
deal has not yet been completed legally.
The investor committed to invest about $70 million in the cascade's
maintenance and modernization within the next six years. The Armenian
Public Services Regulation Commission endorsed the tariff plan the
company would have to adhere within the next 25 years.
ContourGlobal is headquartered in New York, and its assets include 33
power plants in 17 countries with aggregate capacity of 3,500 MWt. The
company also owns a number of wind and solar power plants.
The Vorotan Cascade of Hydropower Plants includes the Spandarian HPP
(76 MWt), Shamb HPP (171 MWt), and Tatev HPP (157.2 MWt). The cascade
generates about 16% of all power in the country and about half of
power generated by all Armenian HPPs.