Nevada, United States [RenewableEnergyWorld.com] Ormat Technologies Inc. announced that on January 5, its wholly-owned subsidiary, Orpower 4 Inc., signed loan documents for project financing of up to US $105 million to refinance Ormat’s investment in the 48-megawatt (MW) Olkaria III geothermal power plant located in Naivasha, Kenya.
Ormat financed construction of Phase I and Phase II of the project, as well as the drilling of wells, by investing approximately US $150 million from its own internal sources. The Phase II expansion of the project added 35 MW in December 2008, bringing the project to its target capacity of 48 MW. The electricity generated is sold to Kenya Power & Light Company (KPLC) under a 20-year Power Purchase Agreement.
The 10-year project finance loan of US $105 million will be provided by a group of European Development Finance Institutions (EDFIs) and was arranged by Deutsche Investitions- und Entwicklungsgesellschaft mbH.
“Having completed the second phase of construction at Olkaria III and adding 35 MW of base load capacity in Kenya, Ormat feels rewarded to have reached this significant milestone of signing the main financing documents for the project,” said Dita Bronicki, Ormat’s CEO. “We appreciate the confidence of Europe’s leading Development Finance Institutions in Ormat and its demonstration of real commitment to Public Private Partnerships in developing Renewable Energy in Africa and in particular, Geothermal Energy Projects in the Rift Valley.”