OPIC finances for Platanares geothermal plant in Honduras
- Ormat Technologies
- Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC), has provided project financing for the development of a 35 MW geothermal baseload power plant in Western Honduras.
To be more specific, the board of directors has approved up to US$135 million financing to Platanares Geothermal, the special purpose vehicle established to carry out the project, which is sponsored by Ormat Technologies, Inc
The project will be developed under a Build, Operate, and Transfer (BOT) contract for 15 years from commercial operation date (COD). The plant will sell its power under 30-year power purchase agreements (PPA) with the national utility of Honduras, Empresa Nacional de Energía Eléctrica (ENEE).
This project will be the first utility-scale geothermal project in Honduras and is expected to generate sustainable, reliable, and cost-effective power, while contributing to the Honduran Government’s goal of generating 80 percent of its energy from renewables by 2032.
The project financing is part of an US$1 billion package to support private sector-led development projects in Sub-Saharan Africa, India, the Caribbean, and Central America in a variety of sectors including transportation, financial services, clean energy, and infrastructure.The US$1 billion package includes, among others:
- Up to $225 million in financing to Induslnd Bank Limited to support the expansion of its micro, small and medium enterprise (MSME) lending programs across India, with at least 25 percent of the proposed facility to support women-managed microenterprises. IndusInd reaches MSMEs across broad and diverse industries across India. This OPIC-supported loan will help to address the substantial credit gap in India’s MSME sector.
- Up to $100 million in financing to Jamaica Public Service Company (JPS) to facilitate infrastructure upgrades that will improve the quality and cost of electricity services in Jamaica. According to the World Economic Forum’s Global Competitiveness Report, Jamaica ranks 79th in terms of its electricity supply, which indicates that there is significant opportunity in this sector. The OPIC loan will help JPS expand electricity services by creating a smart streetlight program, connecting with new customers, reducing electricity theft through a community renewal initiative, and rehabilitating and upgrading its transmission and distribution network.
Elizabeth L. Littlefield, OPIC President and CEO, said:
“Today, OPIC approved over $1 billion in projects that will provide underserved populations with access to transportation, energy, and the financial tools needed to advance their businesses and improve their lives. By supporting projects in various sectors, we will continue to showcase the impact that private sector-led development can have in fast-growing markets around the globe.”