Renewable energy-focused producer Polaris Geothermal (GEO-T, PGTHF-O) has signed a contract with Brazilian engineering company Queiroz-Galvao to expand its San Jacinto Tizate project.
Located in Nicaragua, the geothermal project currently has an installed capacity of 10 megawatts and plans are to boost it to 34 megawatts by the end of 2009. Expansion has already begun at the project with two production and two reinjection wells already completed.
The expansion’s cost is estimated at US$96 million. The bulk will be funded by a US$77-million loan from a group of banks led by the Central American Bank for Economic Integration, with the balance of funds being provided by shareholders.
The company hasn’t entered into a binding commitment with the banking group yet, so funding is still subject to formal internal credit approvals and legal commitments.
Queiroz-Galvao was started in 1953 in Recife, Brazil, by brothers Mario and Antonio de Queiroz Galvao. The company, which has been involved in many complex engineering projects, has since moved its headquarters to Rio de Janeiro.
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