Orzunil I de Electricidad, Limitada

MIGA issued a $11.8 million guarantee covering ING Bank N.V. of the Netherlands for its nonshareholder loan investment in the construction and operation of a 24 megawatt geothermal power plant in Quetzaltenango, Guatemala. The project enterprise, Orzunil I de Electricidad, Limitada, is part of a cooperative joint venture that includes Ormat Holding Corporation, which received coverage from MIGA in fiscal 1997 for the same project. In addition, the IFC is providing debt financing to assist the project. MIGA insurance covers the investment against the risks of transfer restriction, expropriation, and war and civil disturbance.

Orzunil I de Electricidad, Limitada is the first geothermal power plant in Guatemala. The power output will be sold to the national electric company, which is responsible for the country's power transmission and generation. The new plant will increase the power-generating capacity of the region and supplement the current thermal plants that depend on imported fuel sources. The reliable power supply will support higher living standards and new businesses in Guatemala.