Ormat signs deal to finance geothermal project in Kenya
Phase I of the existing power plant commenced commercial operation in 2000 and was incorporated into phase II of the existing power plant in January 2009
Reno, Nev., August 27, 2012 — Ormat Technologies, Inc. announced that OrPower 4, Inc., its indirect unit, and the Overseas Private Investment Corp., an agency of the U.S. government, signed a finance agreement for limited-recourse project financing totaling up to $310 million for the Olkaria III geothermal power complex located in Naivasha, Kenya.
Phase I of the existing power plant commenced commercial operation in 2000 and was incorporated into phase II of the existing power plant in January 2009. Since then, the facility has been in continuous, successful operation.
The OPIC loan is comprised of two tranches aggregating up to $265 million, with a final maturity of about 18 years. The loan will be used to pay costs of the existing facility and fund construction and well field drilling for the expansion of the Olkaria III geothermal power complex that could generate up to 84 MW. The agreement also includes a standby tranche of up to $45 million in the event OrPower 4 elects to construct a further expansion of up to 16 MW.
Disbursements of the OPIC loan are subject to fulfillment of customary conditions precedent for funding, which Ormat expects to satisfy over the next few weeks.