Facing Bankruptcy: SHPP Operators in Shirak Region Applying to Nikol Pashinyan

Facing Bankruptcy: SHPP Operators in Shirak Region Applying to Nikol Pashinyan


'Ersted', 'LightEco' and 'Fenhal' hydroenergetic companies operating in Shirak Region have addressed an open letter to Armenian Acting Prime Minister Nikol Pashinyan mentioning that they are facing bankruptcy. 'Renewable Energy Producers’ Association'  Union of  Legal Entities has disseminated a press release in this regard, which says: 'Listening to ex-Prime Minister Tigran Sargsyan's announcements on 'continuous and prioritized' development of renewable energy, we proceeded to the construction of three SHPPs on the left bank of the Akhuryan River (Amasia, Paros and Cascade). Around 4 billion AMD have been invested (mainly loaning funds aimed at the development of SHPPs). Before the operation, it found out that there an SHPP operating under the privileged conditions, which can hinder the operation of other SHPPs. The privileged SHPP is 'Jradzor' SHPP having been under the patronage of notorious General Manvel Grigoryan. At the very moment when these three HPPs had been issued a construction permit and we proceeded to the construction works with loaning funds, the water use permit of the aforementioned HPP was changed giving a right to the SHPP to operate in all the months of the year.

This is a unique case in Armenia when the SHPP operating via an irrigation canal operated in parallel with the irrigation process, at the expense of the irrigation water. This presupposes that the other three SHPPs, which should have operated at that time, when 'Jradzor' doesn't operate in the irrigation months, should stop their operation because of the absence of the minimum yield in the river necessary for SHPP, to cut short, there no necessary water amount...The damage incurred have been colossal over the years, millions of drams, overdue loan obligations, overdue interest payments, and huge fines...

All this has been presented to the new authorities of Armenia: we have received promises that the situation will be corrected and the justice will be restored for the benefit of investors' interests. We do expect that the revolution having taken place in Armenia will eventually put an end to unlawful actions, that equal opportunities will be established for businessmen, that the investment environment will be favorable and there won't be monopolies and privileged in this sector.

'Ersted' LLC

'LightEco' LLC

'Fenhal' LLC

18:41 November 19, 2018


Hot Spots



Subscribe to receive our latest news