Interview of General Director of “Artsakh HPP” OJSC Vahram Beglaryan to Mediamax Agency and Banks.am portal

- Following offering results, the offer of “Artsakh HPP” shares exceeded demand almost fourfold. Will this fact make certain corrections in the programs and strategy of the company? 

- “Artsakh HPP” OJSC does not intend to change its strategic program and in any case it will complete construction. Construction of hydroelectric power plants has been started and continues with accelerated speed.

As it is known, initial public offering of “Artsakh HPP” OJSC shares concluded on May 25, 2009. 862 074 out of 3 285 715 shares were placed. The total volume of placement made 905mln 177 thousand 700 AMD. At present, the shares are at the stage of listing on “NASDAQ OMX Armenia” Stock Exchange.

Despite the fact that 26% of the offered shares were placed, we consider the offering successful. Of course, one could expect more, but let us not forget that issue and placement of “Artsakh HPP” was the first large-scale investment program in the capital market of Armenia, which did not have its precedent as to the number of participants.

One should also take into account the fact that the offering took place in conditions of the global financial-economic crisis, against the background of decrease in leading exchange indices and abrupt fluctuations of currency exchange rates. 

- Do you plan to attract means, which you did not manage to receive as a result of the offering, from other sources?

- We attract additional borrowed assets from banks in Armenia and the Nagorno-Karabakh Republic (NKR) and spend those means for building new hydroelectric power plants. The gains of the company, as well as funds, received through placement, are also spent for construction. 

- As a result of public offering of shares, “Artsakh HPP” became one of the few Armenian companies, the number of shareholders of which exceeded 1000. How will “Artsakh HPP” build its relations with investors?

- 1111 investors participated in the placement. Among them there are individuals and legal entities from over 10 countries. Taking into account the fact that the company has over 1000 shareholders, we assume carrying out transparent policy and regularly publishing information on strategic programs of the company in the press.

- At which stage are the works on building new HPPs at present? Are construction works in process now?

- Construction of “Trge-1” hydroelectric power plant was initiated in April, 2009, and all the land works on the building, water pipelines, head pond and the weir have already been carried out by now.

Underground concrete works of the building are concluded, constructions of the walls are done. Hydraulic turbines of Chinese production with the total capacity of 3 megawatt are already supplied to NKR.

Simultaneously works are in process on building transmission facilities to connect the hydroelectric power plant to the general electric network.

As we had planned, construction works on “Trge-1” hydroelectric power plant will be completed in 2009.

Construction works of “Madagiz-1” and “Madagiz-2” hydroelectric power plants were initiated back in May 2008. All land works are carried out; water intake constriction works of “Madagiz-1” hydroelectric power plant are coming to their end.

Construction works are properly realized according to the project and the schedule.

- When can we expect new share issue by “Artsakh HPP”?

- The company intends to carry out new issue in 2010, which will mainly aim at involving foreign investors in our programs.