Armenia's Very Curious Fix for the Electricity Crisis

Day 2,813, 16:30 • Published in Armenia Iran • by Anthony Buchanan

When the American company ContourGlobal purchased a super hydropower complex in Armenia earlier this summer, it probably seems that they don't know it would being end up helping avert a major crisis here in Armenia or providing the money to fix a major mess allegedly caused at least in part by a Russian-owned company with ties to the government of Russia

ContourGlobal (headquartered in New York City) recently purchased the hydropower plants on the Vorotan River for $180 million this spring & have pledged to invest $70 million to retrofit the 405-megawatt facility, which is currently provides up to 15% of Armenia's electricity needs.

Prime Minister Hovik have announced last weekend that the government plans to use the money from the sale to subsidize a controversial 16% increase in electricity fees, which went into effect on August 1st.

He didn't specify exactly how much the government would use from the $180 million nest egg.

Yerevan have recently agreed to cover the increase (audit pending) after massive street protest and demonstrations erupted in June in the city over the hike. Tagged by the jittery Russian state-run media as a so-called revolution, the protests have expressed more longstanding frustration with perceived government collusion with its corporate-pal's financial abuses.