Skip to navigation Skip to main content Skip to site map

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
Ormat Momotombo Power Company
Project ID
4136
Fiscal year
2000
Status
Not Active
Guarantee holder
Bank Hapoalim B.M.
Investor country
Israel
Host country
Nicaragua
Environmental category
A
Sector
Power
Gross exposure
 $63.3 million
Project type
Non-SIP

MIGA continued its support for the Ormat Momotombo Power Company in Nicaragua with the issuance of a $63.3 million guarantee to Bank Hapoalim of Israel for its loan to the power company. MIGA guaranteed an equity investment in the project last fiscal year. The insurance covers the project against the risks of transfer restriction, expropriation, and war and civil disturbance. The project involves the rehabilitation and expansion of an environmentally friendly geothermal power generation plant and associated facilities.

The project expects to offer electricity at a lower cost than most competitors, helping to lower the weighted average cost of electricity in Nicaragua. The upgrades, introducing additional capacity, will also bring the project into compliance with modern industry environmental standards. The plant will pay approximately $11 million in taxes and procure 90 percent of its goods and services locally.

 
Apply for an Investment Guarantee
The World Bank Group logo