Ormat to finalize extension to 100 MW at Olkaria III
Through Overseas Private Investment Corporation (OPIC), OrPower 4 Inc has obtained the remaining funds to complete the extension of Olkaria III in Kenya.
According to the news source: Ormat Technologies announced today that OrPower 4 Inc., its wholly owned subsidiary, drew down the remaining $45 million available under its project finance facility with Overseas Private Investment Corporation (OPIC). This drawdown will be used to complete the final phase of construction at the Olkaria III complex in Naivasha, Kenya, bringing the geothermal power plant capacity to over 100 MW.
The $45 million drawdown comprises Tranche III of the previously announced $310 million project finance facility with OPIC. The drawdown of Tranche III has a fixed interest rate of 6.12%. This, together with the earlier conversion of Tranches I and II to a fixed interest rate, as reported July 15, 2013, eliminates any exposure under the facility to movements in market interest rates.
Dita Bronicki, chief executive officer of Ormat, commented, “The final drawdown of this landmark financing from OPIC to a geothermal IPP in Kenya demonstrates support from strong sponsors and environmentally conscious lenders in the successful development of additional projects. We will continue to work with OPIC to explore additional financing for future projects in Kenya and elsewhere.”
Source: Market Watch Website