ContourGlobal, a New York-based international power-generation company, has announced that it is in “advanced negotiations” with the government of Armenia regarding the purchase of the Vorotan Hydro Cascade. ContourGlobal said in a press release disseminated by the Bulgarian PR company, DD Agency that the final purchase price will be “substantial,” and the funds will be sourced from abroad.
According to the press release ContourGlobal affirms its commitment to invest significantly to carry out a “major overhaul of the main generating equipment of the power plants.” It states that given the age and condition of the plants and the lack of investment in the past, an overhaul is urgently needed “to make them more reliable, given their critical role in providing frequency regulation for the Armenian Power Grid.”
The company says it will use for that purpose additional funds from the Overseas Private Investment Corporation (OPIC) and the International Finance Corporation (IFC), which is part of the World Bank Group.
The possibility that the Armenian government would sell the Vorotan hydro-electric cascade in order to underwrite the subsidies for increased Russian natural gas prices has been discussed at length in the Armenian media in recent months. On May 22, Energy and Natural Resources Minister Armen Movsesyan had said that Armenia is not planning to do so.
ContourGlobal is a New York based international power-generation company with approximately 3000 MW in operation or under construction in 17 countries on four continents. ContourGlobal’s 1650 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-power, wind, solar energy and biomass.
