Vorotan Hydropower Plant (450MW)

active

Prospective

ContourGlobal and the Republic of Armenia announced the completion of the acquisition of the assets of the Vorotan hydroelectric facility, a series of three individual power plants with a total electrical capacity of 405 MW on the Vorotan River in southern Armenia. The agreement on the sale of the facility to ContourGlobal was finalized after more than a year of talks and deliberations on June 8, 2015. The acquisition represents the largest single U.S. private investment in Armenia’s history and the first U.S. investment in Armenia’s energy sector. The plant will sell power to the country's privatised national utility, Electricity Networks of Armenia (ENA), under a 25-year power purchase agreement. ContourGlobal is acquiring the Vorotan Cascade at a purchase price of US$180 million. As part of the acquisition agreement, the Company will also invest an additional amount of US$70 million to undertake major electro-mechanical rehabilitation of the three hydropower plants in the Vorotan Cascade. The acquisition and rehabilitation program is being financed with a mix of long-term debt and equity. ContourGlobal also announced that the International Finance Corporation (“IFC”), a member of the World Bank Group, has acquired a 20% interest in ContourGlobal Hydro Cascade to help acquire, operate, and rehabilitate the Vorotan Hydropower Cascade. IFC is investing $23.8m comprised of %16.66 as loan and $7.14m equity. In addition to that, IFC is structuring a US$150 million package, of which IFC’s investment is expected to consist of an A Loan of up to US$35 million to the Company and will also arrange additional funding amounting to US$115 million in the form of B Loan and/or parallel loans. A $ 2.9 million Risk Management was also included. http://www.contourglobal.com/press/1981 https://ijglobal.com/articles/96392/contourglobal-to-close-on-delayed-armenias-vorotan-hydro-in-weeks http://asbarez.com/136983/new-owner-of-armenian-vorotan-power-plant-granted-25-year-license/ http://ifcext.ifc.org/IFCExt/spiwebsite1.nsf/78e3b305216fcdba85257a8b0075079d/fbc7a4a6dcc8661e85257c7b00757f20?opendocument

Energy

World Bank Group

Project

Hydro, Power Generation (CCGT), Power Transmission, Manufacturing (Industrial), Government