Leyte Geothermal Optimization Project

concluded

This 50 MW power plant includes four stations which will be constructed in two phases. The first phase will consist of three topping turbines plants (35 MW) and the second phase will consist of one bottoming-cycle plant (15 MW). Construction of the first phase was expected to be completed in 1997 and construction of the second in 1998. The facilities were developed on a build, operate and transfer basis by Ormat Leyte Company Ltd., a subsidiary of Ormat International. The main shareholders were Ormat international (80%), Itochu Corporation (10%), and the Japanese state owned Electric Power Development Corporation (10%). In September 2007, Ormat Leyte Company Ltd., the BOT contractor, signed an Energy Conversion Agreement (ECA) with PNOC-EDC for a period of ten years, after which the project was to be transferred to PNOC-EDC. PNOC-EDC was to sell the power generated by the project to National Power Corporation (Napocor) under a 25-year power purchase agreement signed in 1997. The financial advisor is Delphos International. The project is financed on a limited recourse BOT basis through both equity and debt. Equity of 25% of the project cost is assigned to Ormat. Construction lenders include ING Bank of The Netherlands. Approximately $50 million in long-term debt has been provided by US Ex-Im Bank. US Ex-Im Bank also has provided construction guarantees against political risk. The Philippine government has also provided guarantees to the project. Financing for the project closed in May 1996, only ten months following the project award. The project is fueled by geothermal steam energy and brine. On Sep. 25, 2007, Ormat Leyte Company Ltd. transferred the power plants to PNOC-EDC following the expiration of its BOT contract.