Ormat Technologies nabs USD 310m in funds for Kenya geothermal plant

(SeeNews) – Aug 27, 2012 - US geothermal power firm Ormat Technologies (NYSE:ORA) said that US state-run Overseas Private Investment Corp (OPIC) would provide up to USD 310 million (EUR 248m) in project financing for an 84-MW geothermal project in Kenya.

OPIC's 18-year loan will be allocated to Ormat Technologies' subsidiary OrPower 4 Inc in two tranches worth a combined USD 265 million. The proceeds from the loan will be used to cover costs of the existing geothermal two units, with a total capacity of 150 MW, and fund the construction and well drilling of the 84-MW Olkaria III expansion project in Naivasha, Kenya. Under the terms of the finance agreement, a further USD 45 million will be extended in case OrPower 4 decides to build an additional facility of 16 MW.

The OPIC loan is still subject to certain customary conditions, which Ormat expects to meet within a few weeks.

Commercial operation of the 45-MW Phase I of the Naivasha power plant began in 2000. The Phase II was launched in 2009 with original installed capacity of 70 MW, which was increased to 105 MW in 2010.

(USD 1 = EUR 0.799)

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