The signing ceremony of the Memorandum of Understanding (MoU) for construction of the Shnogh Hydro Power Plant (HPP) took place on October 25, 2017 at 4:30 PM in the hall of the Ministry of Energy Infrastructures and Natural Resources of the Republic of Armenia. The MoU was signed between Debed Hydro LLC, a subsidiary of the Energy Invest Holding CJSC—the company registered and operating in Armenia—and The Robbins Company, an American world-famous company with a vast international experience in boring large tunnels.

As per the MoU, The Robbins Company is willing to participate in the Shnogh HPP project equity by way of contributing a Tunnel Boring Machine of its own production for boring a 22-km long headrace tunnel, providing a crew for performing the boring works and training a local Armenian labor, and overseeing the process of boring works during entire duration of the project.

The opening speeches were delivered by Mr. Ashot Manukyan, RA Minister of Energy Infrastructures and Natural Resources and by Extraordinary and Plenipotentiary Ambassador of USA in Armenia, Mr. Richard M. Mills, Jr.

According to Minister Manukyan, “The Shnogh Hydro Power Plant construction program is an important step forward in the direction of enhancing Armenia’s energy security in the context of the strategy adopted by the RA Government. I would like to thank Debed Hydro LLC and The Robbins Company for taking this initiative which is very important both for country’s energy system, and for the economy in general. I would also like to thank the US Embassy in Armenia, and personally Ambassador Mills for showing active support for laying down the grounds for the long-term cooperation between the representatives of private sectors of two countries.”

“This year marks the 25th anniversary of our diplomatic relations with an independent Republic of Armenia, and I can’t think of a better symbol of the results of our 25-year partnership than the achievement we are celebrating today,” said U.S. Ambassador Richard M. Mills, Jr. “The signing of this Memorandum of Understanding between Debed Hydro and The Robbins Company is an example of growing U.S.-Armenian cooperation in the energy sector. I want to personally thank Minister Manukyan for coming to me directly with the Shnogh Hydropower plant investment possibility, and congratulate him on our joint effort to turn the project into a reality by bringing The Robbins Company’s world class U.S. tunnel-boring technology and equipment to Armenia.”

The tripartite Framework Agreement to Design, Develop, Finance, Build, Own, and Operate the Shnogh HPP with an installed capacity of 76 MW in Lori Marz was approved by the RA Government’s Decree N 973-Ա dated August 10 and signed by the RA Government, Debed Hydro LLC (as a Developer) and “Investors Club of Armenia” closed-end contractual nonpublic investment fund (as a sponsor).

The cost of implementing the Shnogh HPP project is estimated to fall into USD150-190 million range.

Earlier, the Government of Armenia has approved the necessity of the construction of Shnogh HPP on the Debed River, including the program in the list of measures which ensure the implementation of the Energy Security Concept of the Republic of Armenia. The RA Government has also stressed the need to attract private investments for the construction of the plant and provide guarantees to investors, applying the Public Private Partnership option for ensuring the aforementioned.