ContourGlobal acquires 405 MW hydropower plant in Armenia

ContourGlobal has completed the acquisition of the Vorotan Hydro Cascade, a series of three hydroelectric power plants totalling 405 MW on the Vorotan River in southern Armenia, from the government of Armenia for US$180m. The International Finance Corporation (IFC, part of the World Bank Group), has acquired a 20% stake in the plant. The transaction had been announced in January 2014. The complex consists of the 157 MW Tatev hydropower plant commissioned in 1970, the 171 MW Shamb plant (1978) and the 76 MW Spandaryan plant (1989). The Vorotan Hydro Cascade accounts for about 15% of the installed capacity of Armenia’s electricity system and provides sufficient energy to power 250,000 homes. Under the terms of the agreement, ContourGlobal will supply power to the Armenian grid under a long-term power purchase agreement. ContourGlobal will also invest €50m over the next six years in a refurbishment program to modernize the plants and improve their operational performance, safety, reliability, and efficiency.