"RusHydro" Selling Sevan-Hrazdan HydroCascade to Tashir Group: Kommersant


RusHydro agreed to sell 90% of International Energy Corporation (IEC), which owns the Sevan-Hrazdan cascade of hydroelectric power stations (561 MW) in Armenia, to the structures of Tashir Group owned by Samvel Karapetyan, Russian businessman of Armenian origin. The buyer will be Hrazdan Energy Company owned by Tashir, which, in its turn, owns Armenia’s largest thermal power plant with a capacity of 1.11 GW, as the sources familiar with the parties ’agreements told the Kommersant.

According to the Kommersant, the value of Sevan-Hrazdan hydro cascade can be 173 million rubles. The buyer is also obliged to repay the loans. According to experts, the deal is beneficial to both parties, as RusHydro will be relieved of its debts, while Tashir will expand its participation in the Armenian energy sector.

The offer from Hrazdan Thermal Power Plant was received in July 2019, say Kommersant's interlocutors. According to them, the British audit and consultation firm E&Y estimated 90% of the International Energy Corporation (IEC) at 140 million rubles, but the asset will be sold at a balance sheet value of 172.97 million rubles. The buyer also undertakes all of the IEC's liabilities and loan obligations.

According to one of Kommersant's sources, IEC's total loan portfolio as of September 30 amounted ti 26.23 billion drams ($ 55.13 million), out of which $39.6 million is the remaining debt in the loans issued by Banks of Asian Development and Reconstruction and from European Development Bank in 2013 for the renewal of major hydroelectric funds. According to the 2018 financial statements, IEC's profit was $13 million, and its loss was $ 26 million. RusHydro bought Hydro Cascade from Inter RAO in 2011 for 172.9 million rubles.

Following the completion of the deal, the Russian company has only one asset remaining in the Armenian power system - the fifth block of Hrazdan Thermal Power Plant, which, along with the gas supply network in the country, belongs to Gasprom Armenia. In addition, Rosatom is involved in the modernization of the Armenian Nuclear Power Plant, which is mainly implemented at the expense of the state loan of the Russian Federation.

The Sevan-Hrazdan Hydro Cascade with a capacity of 561 MW was built in 1930-1965, including seven hydropower plants, the production of which in 2018 decreased by 11.5% to 412 million kWh, which is about 5.68% of total electricity production in Armenia last year. The average cascade energy use ratio is extremely low due to the scarcity of about 10% of rivers.

December 03, 2019 at 15:32