Ormat Olkaria III Geothermal Power Plant

Active

Prospective

The Olkaria III project was the first private geothermal power plant in Kenya. The project consisted of the field and plant development of up to 100MW. The first phase included drilling of five appraisal wells and the construction of the 13MW plant. The project was granted to ORMAT. Kenya Power and Lighting Company (KPLC) awarded the project via an international tender. KPLC also awarded a Power Purchase Agreement to Ormat. The first phase of the project was entirely financed from ORMAT's own funds (100% equity). The project sponsor received a MIGA insurance for the amount of US$37.5 million in 2000. ORMAT manufactured the 3 ORMAT Energy Converters and supplied the entire plant on a turnkey basis under an EPC contract. The power plant was in commercial operation since August 2000. In March 2009, OrPower concluded the financing of the second phase of the generation facility. The second phase consiste of US$160 million to 35 MW of geothermal capacity, raising the total capacity to 48MW. In April 2011, OrPower 4 signed KPLC a 20-year power-purchase agreement for an expanded capacity of 36 MW at the Olkaria 3 plant. The expansion was to cost US$ 165 million. The expansion reached financial closure in September 2011 when OPIC approved US$310 milion of financial support to the projects. The funding included US$85 million to prepay existing debt and transaction costs, US$$165m for the power plant texpansion and a US$60m "stand-by facility". Miga also supported the project expansion in September by expanding political-risk insurance coverage to US$ 110 million equity investment of Ormat in the three phases of the project. The EIB provided EUR 119 million ($154.7 million), signed in December 2010. Ormat reported a debt structure of US$265 million and US$45 million in standby - with an 18 year tenor. http://www.miga.org/screens/projects/guarant/regions/ssa02/ormat.htm http://www.eib.org/projects/loans/2009/20090674.htm Add a 165 millio in investment in facilities during the update of the second half of 2011. Add also 2011 MIGA guarantee for 110. http://www.ormat.com/news/latest-items/ormat-technologies-signs-long-term-debt-financing-310-million-olkaria-iii-geotherm

Energy

High

World Bank Group

Project

Commercial, Geothermal, Manufacturing (Industrial), Power Generation (CCGT), Government, Wind