Vorotan Hydrocascade Has New Owner

Vorotan Hydrocascade Has New Owner

Vorotan hydrocascade has a new owner. At the end of 2022, 100 percent of the shares of "Contour Global Hydro Cascade" CJSC, which operates it, were acquired by the US-based KKR & Co. Inc. private investment company.

This transaction is mentioned as an "uncertainty factor" in the 2024-2026 medium-term budget plan of RA.  

"Contour Global Hydro Cascade" CJSC is currently repaying the loan received from the Reconstruction Credit Bank (KfW) in Euros, as well as loans received in US dollars from 3 other IFIs, including the International Finance Corporation.

The company continues to service its loans thanks to additional support from shareholders.

Support from the parent organization was also available in 2022, with an injection of about 2 billion AMD of equity capital, which partially offset higher shareholder loan repayments.

The fiscal risk status remains "substantial" given the company's financial condition and the fact that the company is not satisfied with the approved tariffs. A factor of uncertainty is the acquisition of the parent company by the KKR group, which may change the policy of the group and its investments in certain countries. As a result of this acquisition, the group's credit load has increased and Fitch has classified the group's rating as a "negative observation", as the medium-term budget plan of RA for 2024-2026 says.

Reminder: 10 years ago the Vorotan hydrocascade was sold to "Contour Global Hydro Cascade" CJSC for 180 million USD, which raised concerns among the public and experts

Vorotan hydrocascade includes three Spandaryan, "Shamb" and "Tatev" HPPs with a total capacity of 400 MW. These HPPs are operated with the resources of 5 reservoirs - Spandaryan, Shamb, Tatev, Tolors, and Angeghakot.

January 24, 2024 at 16:52