Ram
Obtains Financing To Expand Nicaragua
Geothermal Project
MANAGUA - Ram Power has closed on a us$77
million credit facility that will help
enable it to boost power output at the 10
megawatt San Jacinto-Tizate geothermal power
project in Nicaragua to 46MW by April 2011.
The consortium of lenders includes Central
American Bank for Economic Integration (CABEI),
Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden (FMO), Export
Development Canada and Cordiant Capital..
CABEI , FMO, and EDC acted as co-arrangers
of the facilities for Polaris Energy
Nicaragua, a wholly-owned subsidiary of
Ram..
Ram Power , based in Reno, Nevada, says the
proposed output expansion will not require
additional drilling. The site is northwest
of the capital Managua.
The company expects to boost site power
capacity to 72 MW by fourth quarter 2011.
Both phases of the project will use
state-of-the-art Fuji turbine generators.
Upon completion of Phase II, the existing 10
MW power plant currently at the San Jacinto
site will be decommissioned.
“The San Jacinto project will provide for
sustainable, low cost and base load
renewable energy in Nicaragua,” says Huub
Cornelissen, director of energy and housing
at FMO.
Ram Power, through Polaris, has a 25 power
purchase agreement with a local subsidiary
of Spanish electric utility Union Fenosa for
up to 72MW
Hezy Ram, chief executive of Ram Power, says
that first phase expansion will result in
$21m of additional revenue for the company
and will reduce carbon emissions by 400,000
tons a year in Nicaragua.
The existing 10MW facility generates 56,000
tons of carbon credits a year, which will
increase to 135,000 when the first phase is
completed. The project will also sharply
reduce the country’s foreign exchange
outlays for crude oil imports.
Ram officials believe San Jacinto-Tizate has
potential to produce 203MW although this
will need to be confirmed with additional
drilling and other tests. |
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