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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
OrPower 4, Inc.
Project ID
3658
Fiscal year
2000
Status
Not Active
Guarantee holder
Ormat Holding Corporation
Investor country
Cayman Islands
Host country
Kenya
Environmental category
B
Sector
Power
Gross exposure
 $37.5 million
Project type
Non-SIP

MIGA issued a guarantee totaling $37.5 million in coverage to Ormat Holding Corporation (Ormat) of the Cayman Islands for its equity investment in OrPower 4, Inc., an 8 megawatt geothermal power plant in Kenya. The MIGA guarantee will cover the investment against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project is the design, construction, and operation of a power plant awarded to Ormat on a build-own-operate basis following a transparent international tender. The investment will be made in two phases. MIGA's coverage is limited to phase one, which includes the 8 megawatt plant and an appraisal of the field's geothermal capacity. Based on the appraisal, phase two may include an expansion in the capacity of the plant to between 28-100 megawatts and the construction of a high-voltage interconnection to the national grid.

The project enterprise will procure 85 percent of its goods and services locally, and create approximately 24 new jobs for operations and an additional 330 during construction and appraisal. Training programs will be offered to staff in operations, plant maintenance, geothermal techniques, security, and business administration. The project will lower the country's dependence on hydropower, as well as imported thermal energy, and have a positive impact on the balance of payments.

 
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