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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
2000
Status
Not Active
Guarantee holder
ING Bank, N.V.
Investor country
Netherlands
Host country
Guatemala
Environmental category
A
Sector
Power
Gross exposure
 $11.8 million
Project type
Non-SIP

MIGA issued a $11.8 million guarantee covering ING Bank N.V. of the Netherlands for its nonshareholder loan investment in the construction and operation of a 24 megawatt geothermal power plant in Quetzaltenango, Guatemala. The project enterprise, Orzunil I de Electricidad, Limitada, is part of a cooperative joint venture that includes Ormat Holding Corporation, which received coverage from MIGA in fiscal 1997 for the same project. In addition, the IFC is providing debt financing to assist the project. MIGA insurance covers the investment against the risks of transfer restriction, expropriation, and war and civil disturbance.

Orzunil I de Electricidad, Limitada is the first geothermal power plant in Guatemala. The power output will be sold to the national electric company, which is responsible for the country's power transmission and generation. The new plant will increase the power-generating capacity of the region and supplement the current thermal plants that depend on imported fuel sources. The reliable power supply will support higher living standards and new businesses in Guatemala.

 
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