Ormat Momotombo Power Company

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.