Friday, June 27 2014

Unfortunately, Armen Movsisyan, who held the position of Armenian minister of energy and natural resources for over 10 years, has failed to understand that (or pretends that he does not understand) the difference between privatization of a property complex and the Government's consent to the sale of an enterprise. In the former case, the matter concerns legal privatization, when the funds are transferred to the state budget and use of these funds is controlled by the National Assembly. In the latter case, the matter concerns concealed (illegal and unclear) privatization, when the funds are transferred to the personal account of en enterprise and, as a rule, can be used without knowledge of the National Assembly. These are the comments made by the Office of the second president of Armenia Robert Kocharyan on the ex-minister of energy and natural resources and currently Armenian President's Advisor Armen Movsisyan to Tert.am.
To recall, Movsisyan told Tert.am that in the Vorotan Hydro Cascade deal the property complex was being privatized and it was not the first case in the country when the property complex, not the company, was privatized. He added that the complex was being privatized in accordance with the relevant decisions of the Government. In 2003 the Armenian authorities privatized the property complexes of Sevan-Hrazdan Hydro Cascade and Hrazdan HPP CJSC. In the specified cases the processes were carried out without the Parliament and without any decision of the Government and were ratified by the incumbent president according to the-then Constitution. Those deals are not criticized today, Movsisyan says. 

Kocharyan's office believes that this deal is just a good way to get $180mln. "The Government will approve the purchase and the money will go to an account of a company that exists only on paper. The cascade was removed from the list of companies subject to privatization in 2006. So, it is not clear what facilities the Minister is talking about. As regards the Hrazdan TPP, it was privatized under the Assets For Debts program, following approvals by the National Assembly and the Constitutional Court. So, 'silence is golden' is the best thing we can say about Movsisyan's statement. After this we can only wonder what advice such an 'advisor' can give to the President," says Kocharyan's office.

Earlier Kocharyan said that the only good thing about the purchase of the Vorotan Cascade is that it involves a US company. "But this is still a very suspicious deal. They are selling one of the most attractive energy facilities in Armenia like they would sell some old office furniture. This deal neglects Armenia's interests and gives it no chance to dispute anything in court," Kocharyan said.

"It is obvious that such a wrong deal will raise electric power prices in Armenia, i.e. the ordinary citizens will suffer because of the mistakes and greediness of state officials. The impression is that Armenia took no part in elaboration of the agreement at all. The document should be revised or quitted before it's too late.  The deal is so illegal that the parties will sooner or later be brought to responsibility. It should be noted, though, that it is a very doubtful deal for the buyer as well", said Kocharyan. 

On Nov 27 2013 the Armenian-US intergovernmental commission approved the $180mln deal for the purchase of the Vorotan Cascade by the CountourGlobal of the United States. 

For getting a license for the facility, the buyer needs a closing certificate. But the contract has a point saying that unless finalized within 75 days, the deal may be cancelled by either of the parties.  Recently Minister David Harutyuyan said that this deadline had been extended in the best interest of the investor.
The Vorotan Cascade consists of Tatev, Shamb and Spandaryan water power plants. Its total capacity is 400MW, with annual output being 1.16bln KWh. -n- -0-