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Detail of GEF Project #1272
| GEF Project ID | 1272 |
| IBRD PO ID | 505590 |
| Funding Source | GEF Trust Fund |
| Project Name | Ormat Olkaria III Geothermal Power Development |
| Country | Kenya |
| Region | Africa |
| Focal Area | Climate Change |
| Operational Program | 6 |
| PDF-A Approval Date | 2000-12-06 |
| Pipeline Entry Date | 2000-11-10 |
| Approval Date | 2001-12-07 |
| Project Cancellation Date | 2002-04-04 |
| Project Status | Cancelled |
| Executing Agency | IFC |
| Executing Agency | IFC |
| Description | The project will use GEF funds to provide a partial risk guarantee facility to address incremental risks and costs of exploration and development of the Olkaria III geothermal field in Kenya. Such risks and costs have been identified as one of the major barriers for the growth and development of this type of renewable energy. The project provides a partial guarantee to cover, on a cost sharing basis with the private developer, unforeseen costs overruns that may occur during the exploration and developemnt phase of the geothermal field. This financing mechanisms represents a novel use of GEF funds to assist geothermal resource development and may serve as a template for future applications in other similar situations in the developing world. |
| Implementation Status | IFC received an official request from ORMAT, the project sponsor, to cancel the GEF-funded partial guarantee for the Olkaria III project. The reason for the cancellation was that most recent test results from the on-going drilling program indicated that sufficient resources have been identified to enable construction of the proposed power plant. This fortunate turn of events eliminated the need for the GEF grant which had been intended to enable further high risk drilling exploration; exploration which was no longer necessary. Cancelled by the Bank on 4/4/2002 per note of Rohit Khanna. >>>>> |
| PDF A Amount | 25,000 USD |
| GEF Project Grant | 5,000,000 USD |
| GEF Grant | 5,025,000 USD |
| Cofinancing Total | 180,000,000 USD |
| Project Cost | 185,025,000 USD |
| GEF Agency Fees | 640,000 USD |
| GEF Project (CEO Endo.) | 5,000,000 USD |
| Cofinancing Total (CEO Endo.) | 180,000,000 USD |
| Project Documents |
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