Wednesday, 29 January 2014
RA Government and ContourGlobal Hydro Cascade Sign Vorotan Hydro Cascade Sale and Purchase Agreement
The Government of the Republic of Armenia, Vorotan Cascade of Hydroelectric Power Plants CJSC, and CG Solutions Global Holding Company LLC have signed an estate sale and purchase agreement. In the presence of Prime Minister Tigran Sargsyan, the agreement was signed, on behalf of the Republic of Armenia, by the RA Minister of Energy and Natural Resources Armen Movsisyan, on behalf of ContourGlobal Hydro Cascade and CG Solutions Global Holding Company LLC, by ContourGlobal Hydro Cascade Executive Vice President Garry Levesley, and on behalf of Vorotan Cascade of Hydroelectric Power Plants CJSC, by the company's CEO Sasun Khachatryan.
Before signing the agreement, Prime Minister Tigran Sargsyan and Mr. Garry Levesley held a meeting and expressed their satisfaction with the transaction and stressed the importance of the forthcoming investment programs. “Armenia is very interested in bilateral coopeartion and new investment programs,” said Tigran Sargsyan.
Garry Levesley thanked the armenian side for the effective cooperation and assured that they would do everything to become an effective partner. “We understand what kind of responsdibility we've assumed and will do everything to support Armenia's energy security,” said ContourGlobal Executive Vice President. According to Levesley, this transaction can also help in attracting more intensive investments from western investors.
In turn, the US Ambassador to Armenia, John Heffern stressed the importance of this transaction, noting that it will have its contribution to strengthening and developing the Armenian-American relations.
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ContourGlobal is a New York based power-generation company with approximately 3500 MW in operations in 17 countries and 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, 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. Vorotan Cascade Of Hydroelectric Power Plants will become one of Europe's largest deals, totaling $180 million.
Under the terms of the agreement, over the next 6 years ContourGlobal will invest $70 million in a refurbishment program to modernize the Vorotan hydroelectric plants, according to capital investments and expenditure plan submitted in advance, which will be discussed and agreed on with the Public Services Regulatory Commission. The latter has also confirmed the tariff plan, according to which the company will ensure the continuous and uninterrupted operation of Vorotan Cascade of Hydroelectric Power Plants in the next 25 years.
