US geothermal firm Ormat Technologies has received a US$310mn limited-recourse loan from the Overseas Private Investment Corporation (Opic) for its Olkaria III power complex in Kenya.
The loan comprises of two tranches with a combined amount of US$265mn, with a maturity of approximately 18 years, and will be used to cover costs at the existing plant and build an up-to-84MW expansion.
The facility also includes a standby tranche of up to US$45mn in case Ormat decides to expand the Kenyan plant by a further 16MW.
“This loan will enable us to expand the Olkaria III geothermal power complex in order to help meet the electricity demand in Kenya by providing base-load, sustainable geothermal energy,” says Dita Bronicki, Ormat’s CEO. “We appreciate Opic’s recognition of the importance of this project and its commitment to work with us on this financing. We look forward to a fruitful relationship with Opic as our lender in Olkaria and elsewhere.”
Phase I of the power plant started commercial operations in 2000 and was incorporated into phase II of the plant in January 2009.