Orzunil I., S.A.

active

The first project is a 24-MW geothermal power plant located in Zunil, Quetzaltenango. The plant will be developed on a Build-Own-Operate basis by Orzunil which is related to Ormat Industries (Ormat Turbines Ltd), an Israeli power equipment vendor. Other sponsors are Scudder Latin American Fund, IFC, and Commonwealth Development Corporation. The project total cost is estimated as US$ 66.7 million in 1997. The power plant is scheduled to start commercial operations in December 1998. Ormat Industries signed a 23-year power purchase agreement with Instituto Nacional de Electrificacion (INDE), the Guatemalan national electricity utility company, in 1993. That power purchase agreement was one of the ten that INDE signed with private developers in order to alleviate energy shortages due to insufficient generation capacity. The first project is a 24 MW geothermal power plant located in Zunil, Quetzaltenango. The power plant is scheduled to start commercial operations in December 1998. The project was supported by the IFC. In 2000, the IFC approved a US$ 1 million interest rate swap facility related to the FY97-approved loan. In its fiscal year 1997, MIGA issued separate guarantees of $4.5 million and $8.5 million, respectively, to Ormat International, Inc of the United States for its equity and loan investments in the construction and operation of a 24 MW geothermal power plant in Guatemala. In 2000, MIGA issued an US$ 11.8 million to a private bank which is providing financing for the project. MIGA's guarantees cover the risks of transfer restriction, expropriation, and war and civil disturbance. None None