Miravalles-3 Geothermal Power

active

Instituto Costarricense de Electricidad (ICE) in March 1997 selected a joint venture of Oxbow Power Corp. (40%), Marubeni Corp. (40%) and Jose Altman & Co. (20%) to build, operate and transfer the 27.5-MW Miravales-3 geothermal power project at the Miravalles Volcano in Guanacaste Province under a 15-year contract. The cost of the project is US$ 70 million and the target on line date is first quarter 2000. ICE will buy the unit's electric production for about 6.7 cents/kWh and provide the geothermal recource needed to run the plant. The partners are responsible for connecting the plant to the national grid, and providing ICE $3-million of financing to cover material and services needed to connect the plant. The project sponsors closed a $70 million financing package in Sept. 1998. The package includes $20.5 million in sponsor equity and $49.5-million in debt contributed by the IADB under its A-Loan/B-Loan program. The IADB is providing a $16.5-million A Loan and a commercial bank consortium of Fuji Bank, Dresdner Kleinwort Benson and the Dexia Group is funding the $33-million B-Loan. Construction will be handled by Mitsubishi Heavy Industries. Under the term of the bid, ICE has an option to authorize at a fourth 27.5-MW unit, which could be awarded to the winner of Miravalles-3. None None