New York-based ContourGlobal has signed an agreement with the Armenian government to purchase and modernize the 405-MW Vorotan hydroelectric project.
The US$180 million deal represents the largest single U.S. private investment in Armenia's history and the first into its energy sector, ContourGlobal said, and represents the culmination of about two years of collaboration with the country's government.
"We are thrilled to have the opportunity to play an integral role in the Armenian power system and to make a significant and lasting contribution to a key part of the country's infrastructure," ContourGlobal CEO Joseph C. Brandt said. "I look forward to working with the government of Armenia towards a successful conclusion of this transaction."
The Vorotan project is a cascade of three plants on the Vorotan River in southern Armenia that accounts for about 15% of the country's total installed capacity.
Per the agreement, the three plants will be owned and operated by ContourGlobal subsidiary ContourGlobal Hydro Cascade. The company said it will invest $70 million over the next six years in a refurbishment and modernization program that will "create 150 near-term jobs in addition to the 150 long-term technicians employed at the plants".
ContourGlobal said it already operates about 1,000 MW of renewable projects that include hydropower, wind, solar and biogas.
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