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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Orzunil I de Electricidad Limitada
Project ID
3253
Fiscal year
1999
Status
Not Active
Guarantee holder
Ormat Holding Corporation
Investor country
Cayman Islands
Host country
Guatemala
Environmental category
A
Sector
Power
Gross exposure
 $1.6 million
Project type
Non-SIP

MIGA issued $1.6 million in coverage to Ormat for its investment in a 24-megawatt geothermal power plant in Quetzaltenango, Guatemala. Ormat will build, own, and operate the project enterprise, Orzunil I de Electricidad, Limitada. MIGA previously issued $5.6 million in coverage to Ormat for this project in fiscal 1997. The International Finance Corporation (IFC) is also providing loan financing to this project. MIGA coverage is issued against the risks of transfer restriction, expropriation, and war and civil disturbance.

The power output will be sold to Guatemala's national electric company, Instituto Nacional de Electrificación, which is responsible for the country's power transmission and generation. This new environmentally-sustainable power source will increase the existing limited power-generating capacity of the region and supplement the current thermal plants that are dependent on imported fuel sources. It will develop a renewable energy resource to support higher living standards and new businesses in Guatemala. The project will promote private participation in power generation and will assist the reconstruction efforts in the aftermath of the El Niño crisis.

 
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