On December 30, 2005, ORMAT Technologies, Inc., (ORA) subsidiary, Puna Geothermal Venture (PGV) completed the second stage of a two-stage refinancing agreement for its Puna Geothermal Project in Hawaii.
As announced on May 17, 2005, Ormat’s subsidiary PGV entered into a 31-year head lease, the first stage of the two-stage transaction, with an unrelated company (the “Lessor”). A secondary stage of the transaction was intended to refinance two new geothermal wells for production and injection.
The successful completion of the drilling, together with meeting certain other operation conditions that were agreed upon between the Lessor and PGV, enabled the parties to supplement the original agreement by entering into a similar operating lease transaction in the amount of $12.0 million for the additional wells. The completion of this secondary stage brings the total Project financing to $83.0 million.
Commenting on the completion of the second stage of the financing, Dita Bronicki, President and Chief Executive Officer of Ormat, said: “The execution of this stage proved our ability to successfully develop the geothermal field in Puna and expand the plant’s generating capacity to 30 MW. We are now ready to turn our attention to the development of the next phase of the Puna project which will add 8 MW to the existing facility and is expected to come on line before the end of 2007”.
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