YEREVAN (Arka)—U.S. Ambassador to Armenia John Heffern told reporters Thursday that the Armenian government and ContourGlobal, a New York-based international power-generation company, are continuing talks to finalize an agreement that the two parties signed in January, under which ContourGlobal is to purchase and modernize the Vorotan Hydro Cascade, a series of three hydroelectric power plants on the Vorotan River in southern Armenia, for a purchase price of $180 million.
This acquisition, if successfully finalized, will represent the largest single U.S. private investment in Armenia’s history and the first U.S. investment in Armenia’s energy sector. The Vorotan Hydro Cascade accounts for roughly 15 percent of the installed capacity of Armenia’s electricity system and provides sufficient energy to power 250,000 homes.
“We fully support the negotiation process and we hope that this transaction will be completed successfully and satisfy both sides,” the Ambassador told journalists on Thursday.
Under the terms of the agreement, ContourGlobal Hydro Cascade, a direct and wholly owned subsidiary of ContourGlobal, will own and operate the three hydroelectric facilities located on the Vorotan River and will supply power to the Armenian grid under a long-term power purchase agreement.
ContourGlobal will also 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. ContourGlobal expects the modernization to create 150 near-term jobs in addition to the 150 long-term technicians employed at the plants.