The Multilateral Investment Guarantee Agency of the World Bank (MIGA) has increased the guarantees for a 50-MW geothermal project in Ethiopia, representing the first phase of a planned 150-MW greenfield geothermal power plant. The guarantees were issued in 2021 to Tulu Moye SAS of France to cover its equity and quasi-equity investments in Tulu Moye Geothermal Operations Plc, the Ethiopian company building the geothermal power plant in Oromia Regional State, against the risks of breach of contract, expropriation and war and civil disturbance for a period of up to 15 years. The original sum of USD 67.5 million has now been increased to USD 117 million (EUR 108m), MIGA said on Wednesday. The facility will help Ethiopia diversify its energy resources beyond hydropower, which makes the country susceptible to droughts. MIGA said it also used the IDA Private Sector Window MIGA Guarantee Facility, which provides a shared first loss layer of up to USD 40.95 million, of which IDA’s share is USD 32.76 million.

Source: Ethiopian News November 16, 2023 16:29 UTC