ArmInfo. The EUR 51 mln loan of KFW bank aimed at the modernization of the Vorotan HPPs cascade will be redrawn to the American Company of Global Hydro Cascade.
Such a decision was taken at the Public Services Regulating Commission session on March 29. Presentig the Draft Decision, Segey Aghinyan, the PSRC Development and Monitoring Department head, stated that the Commission proceeds from thew borrowing Agreement signed between Armenian Government and Global Hydro cascade Company. The assets will be allocated at the implementation of HPP cascade modernization project. In particular, it is planned to replace fully the turbines, generators, turbine regulators, operation systems of Tatyev, Shamb and Spandaryan HPPs, included in the structure of Vorotan HPPs Cascade. The loan management will be implemented by the company at the cost of the power energy sold.
As ArmInfo has reported earlier, the IFC, a member of the World Bank Group, has arranged a landmark $140 million financing package for the Vorotan Hydropower Cascade, one of Armenia's main power generating facilities, to bolster the country's supply of clean energy.
IFC has told ArmInfo that this is the first major international debt financing package in Armenia's power sector. The funding will go to ContourGlobal Hydro Cascade, a subsidiary of ContourGlobal, an international power-generation company that acquired the Vorotan Cascade in 2015. The package includes a loan of $45 million for IFC's own account and parallel loans of $65 million from FMO, the Dutch development bank, and $30 million from DEG, the German Investment and Developmen
To note, earlier ArmInfo reported that 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). 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 Bank before selling the Cascade to the US company. 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).