US company to become owner of biggest cascade of hydraulic power station in Armenia

Yesterday the Commission for Public Services Regulation approved the deal to sell state-run closed-type joint stock company (JSC) Vorotan Cascade hydraulic power station to the daughter company of US Contour Global, Contour Global Hydro cascade JSC.

The Commission reported that Spandarian hydraulic power station (two blocs 76 MWt each), Shamb (two blocs 171 Mwt each) and Tatev (three blocs 157.2 Mwt each) with all infrastructure, which are a part of the cascade, will be expropriated.

Even with the worn out equipment the cascade generates about 1 billion KWh of power a year. This makes about 15% of power generated in the country every year – about 6 billion kwh.

The cascade was the state property, but since 2003 it was removed from the list of the objects liable to privatization. Once in several years the Commission has increased cost of power generated by the stations up to the current 6.8 dram per 1 KWh.

Big power consumers, such as mining enterprises, are located near the Vorotan cascade and they are isolated from the centre of the republic by the difficult relief. Being located close to the Iranian border, the cascade plays a significant role in mutual overflow of power between Armenia and Iran.

According to the Armenian Ministry of Energy, cost of construction of 1 MWt capacity in Armenia costs $1-1.5 million. Considering this fact, cost of Vorotan cascade must total as minimum $400 million, which is a very good source of replenishment of state budget.

Contour Global Hydro cascade company has expressed readiness to invest $180 million into the cascade.—0—