Vorotan Hydros

completed

The proposed project entails the acquisition, operation, maintenance and major electro-mechanical rehabilitation of the 404.2MW Vorotan cascade of hydropower plants (HPPs) along the Vorotan River (together, the “Vorotan Cascade”) in southern Armenia (the “project”), including the following:76MW Spandaryan HPP, Spandaryan Dam (Embankment type, Mixed Rockfill & Earthfill, 83m dam height), plus Angeghakot Reservoir, commissioned in 1989;171MW Shamb HPP, Tolors Dam (Embankment type, Sandy gravel Soil, 70m dam height), commissioned in 1979; and157.2MW Tatev HPP, Tatev Dam (Embankment type, Sandy gravel, 41m dam height), plus Daily Regulation Reservoir, commissioned in 1970.The Vorotan Cascade is among the main power generation complexes in Armenia, providing both peak and base load generation, and performing grid stabilization services. The Vorotan Cascade is supported by a system of five reservoirs: Spandaryan, Angeghakot, Tolors, Shamb and a daily regulation reservoir. A newly created Armenian company, ContourGlobal Hydrocascade CJSC (the “company” or the “project company”), which is wholly-owned by ContourGlobal, a global developer and operator of power generation projects, is acquiring the Vorotan Cascade assets from Vorotan Complex of Hydro Power Plants CJSC, a state-owned company.ContourGlobal currently owns over 30 power generation plants in 17 countries around the world, totaling approximately 3.5 GW of installed capacity and projects under construction. These include thermal (fueled by natural gas, diesel, fuel oil and coal), wind, solar, and hydro types of power generation. ContourGlobal also owns and operates small captive energy generation facilities on-site for commercial beverage bottling companies worldwide. ContourGlobal is a privately-held company that was founded in 2005 by its Chief Executive Officer Joseph Brandt and Reservoir Capital Group, LLC, a New-York basedinvestment firm with over $6 billion in assets under management. The project company is wholly-owned by a ContourGlobal subsidiary.ContourGlobal is acquiring the Vorotan Cascade at a purchase price of US$180 million. As part of the acquisition agreement, the company will invest an additional 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. IFC’s proposed equity investment in the Company is for up to US$15.6 million.