OrPower 4, Inc.

In June 2000, MIGA issued a guarantee totaling $43.3 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.