Vorotan HPP Cascade  Modernization Investment project Approved

ArmInfo. The Public Services Regulation Commission at its December 21 session approved the Vorotan HPP Cascade  Modernization Investment Project for the years of 2016-2017. The owner of the Vorotan HPP Cascade is the "Contour Global Hydro Cascade" JSC

The total investments portfolio will form AMD 98,1 mln. AMD 10, 4 mln is planned to allocate for information technologies system equipment purchase, and AMD1,4 mln is planed to draw for sustainable work of Yerevan server. Beside that, AMD 9 mln will be allocated to replace the worn out communication system, and AMD 7 mln - to environmental impact assessment. It is also planned to allocate assets for other problems solution, including AMD5 mln - for measuring units purchase.  As ArmInfo has informed previously, the  asset portfolio of Vorotan Hydro Cascade, which is the property of Contour Global Hydro Cascade (US), will be performance security. The relevant permit was issued on November 7 by the Public Services Regulatory Commission (PSRC).    

Seda Shahinyan, head of the PSRC's department in charge of legal and licensing issues, said that 100% of the company's shares will be equally distributed among HSBC Trustee Company, International Finance Corporation, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), Deutsche Investitions und Entwicklungsgesellschaft (DEG), and the Republic of Armenia. The pledge of property will allow attracting additional 150 mln EUR for modernization of Vorotan Hydro Cascade, exclusive of the 51 mln EUR the Armenian government attracted from the German KfW Banjk before selling the Cascade to the US company.

To recall, previously the Armenian Government took a decision to renew the agreement with Contour Global to specify the US investors' obligations related to redemption of the remaining part of the 51 mln EUR loan provided by the German KfW Bank. On 12 August 2015, Contour Global and the Republic of Armenia announced the completion of the deal on acquisition of the assets of Vorotan Hydro Cascade for $180 mln. In 2015 Vorotan Hydro Cascade generated ensured 15% of the electric power generated throughout the country. The company received a permit for running 3 HPPs of the Vorotan Hydro Cascade (total capacity of 404.2 MW) for 25 years: Spandaryan HPP (76 MW), Shamb HPP (171 MW) and Tatev HPP (157.2 MW).