ORMAT

QUALIFICATIONS AND EXPERIENCE

August 1988

610 East Glendale Ave., Sparks, Nevada 89431-5811 • Telephone (702) 356-9111 • Facsimile (702) 356-9125 • Telex 170030

TABLE OF CONTENTS

1. OVERVIEW

2. ORMAT GROUP OF COMPANIES

3. OPERATING PROJECTS

4. PROJECTS UNDER DEVELOPMENT

5. ENGINEERING

6. PROJECT MANAGEMENT PLAN

7• CORPORATE RESUMES

8. BROCHURE/FACT SHEETS

2. ORMAT GROUP OF COMPANIES

The Ormat Group of companies includes the followingentities:

A. ORMAT INC. AND SUBSIDIARIES

o Ormat Inc. (01), Sparks, Nevada, establishedin 1972 for the marketing, engineeringsupport and, after sales service of OEC'sand related equipment.

o Ormat Engineering Inc. (OEI), Sparks, Nevada(wholly owned subsidiary), established in1980, to provide engineering and projectmanagement services.

o In addition, Ormat Inc. holds interests invarious geothermal projects through specialpurpose corporations.

B. ORMAT ENERGY SYSTEMS AND SUBSIDIARIES

o Ormat Energy Systems, Inc. was establishedat the end of 1986 for the development ofrenewable energy projects and the sale ofrelated equipment and services in the UnitedStates and Canada. Fifty percent (50%) ofOESI's stock is held by LFC FinancialCorporation. The association with LFC willcontribute to the financial strength ofOrmat.

o OESI also holdsprojects throughcorporations.

interestsspecial

in variouspurpose

C. ORMAT TURBINES (1965) LTD. (OTL)

OEC and renewable energy related activities.

Ormat Turbines Ltd. was formed in 1965 byPresident, Lucien Y. Bronicki, in order to bringto the market, products based on a technologywhich had previously been developed in a solarengine research project in the National PhysicalLaboratory in Jerusalem. Using this technology,Ormat adapted the basic system to the use offossil fuel, and concentrated its efforts onhighly reliable, on-site power generators fortelecommunications. It was at this very timewhen, following the introduction of solid stateelectronics to telecommunications, a reliable

maintenance-free power source was being sought.From 1974, following the energy crisis, Ormatapplied the meanwhile matured technology todevelop new products and systems directed towardcogeneration and the use of alternative energysources.

1. OVERVIEW

Ormat Turbines Ltd. was formed in 1965 by its currentPresident, Lucien Y. Bronicki, in order to bring tothe market products based on technology which hadpreviously been developed in a solar engine researchproject in the National Physical Laboratory inJerusalem. Using this technology, Ormat adapted thebasic system to the use of fossil fuel, andconcentrated its efforts on highly reliable, on-sitepower generators for telecommunications. It was atthis very time when, following the introduction ofsolid state electronics to telecommunications, areliable maintenance-free power source was beingsought. The "remote power OEC" was specificallydeveloped. for this application. Through this product,Ormat entered a field which was dominated by largeinternational companies with relatively static productlines. Ormat's innovative high technology equipmentquickly gained worldwide industry acceptance. Thisproduct, which has proven its high reliability in thefield, has been the key element in Ormat's growth overthe years.

Another element in Ormat's business development wasthe entry into license agreements with U.S. Companies- first with Lear--Siegler, where Ormat manufacturedand supplied electrical generators for Israeli builtaircraft. Later, similar "know how transfer"agreements were executed with Kato Engineering for themanufacture of large electrical generators andEcolaire Heat Transfer for the fabrication ofspecialized heat exchangers.

From 1974, following the energy crisis, Ormat appliedthe meanwhile matured technology to develop newproducts and systems directed toward cogeneration andthe use of alternative energy sources. Through anintensive research and development effort, which wasapproved and supported by the Government of Israel asa National Research Project, Ormat developed a newfamily of products, including systems, utilizing wasteor unused process heat in refineries and other processindustries which produce electricity at power levelsof 300 to 5,000 kW in various modular configurations.Along with this product line, Ormat, through itsaffiliated company, Solmat, was engaged in a $20million project to build a 5,000 kWe Solar Pond PowerPlant. In addition to the significant internalresearch and development, in which the company hasengaged continuously since its inception, substantialwork was performed in collaboration with externalresearch institutes and universities, among them theWeizmann Institute the Hebrew University, Tel AvivUniversity, Technion and the Ben Gurion University.

3. OPERATING PROJECTS

A. Steamboat Geothermal - Steamboat Springs, Nevada

Ormat managed the resource development andconstruction of the power plant and operates thefacility. The plant incorporates seven (7)modular power units in Ormat's proprietarycascading design, to generate 6,700 kW grosspower, with a capacity for sale to the utility of5,400 kW. The temperature of the geothermalfluid is 3350 F. The plant was placed incommercial operation in late 1986.

B. Ormesa Geothermal I - Imperial Valley, California

Located in Imperial Valley, California. The 30MW (Gross) geothermal power plant constitutes thelargest project developed by Ormat to date.Ormat has arranged the $88 million financing forthe project, developed the field which containsthe geothermal resource, including drilling,piping and installation of the pumps.

As an active participant in this project, Ormatconstructed the power plant (With AtkinsonMechanical as the general contractor) using 26Ormat Energy Converters (OECs), as well ascooling towers, transformers andinterconnections. All the OECs are computercontrolled. The plant operates continuously toproduce a total output of 30 MW.

The project sells electricity to SouthernCalifornia Edison Company (SCE) under a 30-yearPower Purchase Agreement.

C. Ormesa Geothermal II - Imperial Valley, California

Located In imperial Valley, California, this 20MW (gross) facility is the sister project toOrmesa I. The financing of $66 million for thisproject was based solely on the private capitalmarket arranged by Ormat. This project wasfunded as a non-recourse leveraged lease. Ormatand Harbert International (also the generalcontractor) act as the lessee and will alsooperate and maintain both the field and the powerplant, which consists of 20 OECs, as well ascooling towers, pumps and piping, transformersand interconnections, all of which are computercontrolled. The project declared firm operationin March 1988.

D. Tad's Enterprises - Wabuska, Nevada

This project was the first geothermal power plantto generate electrical power in the state ofNevada. The first 800 kW turbine has beenoperating successfully since September 1984. Theavailability has exceeded 96% over the last year.A second OEC was installed in early 1987 and iscurrently operating successfully.

E. Cove Fort Geothermal - Sulphurdale, Utah

The Sulphurdale project is a modular power plantwhich Ormat constructed on a turnkey basis. Thefirst phase, rated at 3.2 MW, was inaugurated inSeptember 1985. Since start-up on October 15,1985, the four units have been operatingcontinuously. The City of Provo municipalutility is the ultimate purchaser of the power.

F. Empire Geothermal - Empire, Nevada

Ormat managed the resource development andconstruction of the power plant, and will operatethe facility. The project became operational inDecember 1987.

The financing of thj.s 4.8 MW (gross) powerproject was arranged by Ormat. This project hasthe potential of 10 MW (net) and will use theOrmat technology. Sierra Pacific Power Company(SPPC) pays a fixed rate for capacity and energyprices adjusted to specific price indices.

G. Soda Lake Geothermal - Soda Lake, Nevada

Located in Nevada, this 3.6 MW (gross) powerplant is being constructed by Ormat. Thefinancing of the power plant was also arranged byOrmat. The geothermal resource is owned byChevron and contains proven production andreinjection wells.

The power plant incorporates three OECs and 2.75MW net power will be sold to SPPC under a 30-yearPower Purchase Agreement. The project becameoperational in December 1987 and has beenoperating fully operational since then.

LIST OF OPERATING PROJECTS - USA

AUGUST 1988

The following list details the Ormat installations which generate and sell electricity tothe utilities.

Number of Hours of OperationProject Name OECs (Aggregated) Corrments Reference

Wabuska 2 34,855 Second unit start- (1)up in July 1987

Union Carbide 1 19,857 Industrial appli- (2)cation

Soda Lake Geothermal 3 13,407 Currently in commer- (3)cial operation.

Empire Geothermal 4 3,695 Currently in corrmer- (3)cial operation

Cove Fort Geothermal 4 87,845 Low pressure steam (4)with high percentageof non-condensibles

Steamboat Geothermal 7 88,888 Air cooled OECs. In (5)commercial operation

Ormesa I 26 240,823 Currently in corrmer- (6)cial operation

Ormesa II 20 89,374 Currently in corrmer- (7)cia1 operation

El Paso Solar Pond -U.S. Bureau of Reclamation 1 900 Solar Pond: Inter- (8)

mittant dutyTOTAL 68 579,644

For your consideration, we offer the following list ofreferences whom you may contact:

1. Mr. Neil TownsendChairman of the BoardTad's Enterprises(702) 463-4633

2. Mr. Dallas ShugartManager of OperationsUnion Carbide(714) 829-4000

3. Mr. William G. LeedyBusiness Development ManagerConstellation Development, Inc.(301) 783-2818

4. Mr. George MorseOperations ManagerProvo City Power Board(801) 373-7170

5. Mrn Tom QuinnPresidentFar West Capital(801) 566-7771

6. Mr. Jim PorterVice PresidentLease Finance Corporation(215) 964-2000

7. Mr. Bruce AmblerConstellation Developments, Inc.President(301) 783-2805

8. Dr. Stan HightowerCoordinator for Advanced Energy ApplicationsBureau of Reclamation(303) 236-5996

4. PROJECTS UNDER DEVELOPMENT

A. Ormesa GeothermalCalifornia

IE Imperial Valley,

Ormesa Geothermal IE, an expansion of the OrmesaI Project, consists of an interconnected array often (10) OEC units which will provide SouthernCalifornia Edison (SCE) with a base load capacityof 8 MW (net).

Ormat will lease the $29 million geothermal powerplant from institutional investors pursuant to a20-year leveraged lease and will provide long­term operations and maintenance services to thepower plant.

Ormat's geothermal resources will provide theproject with 2.8 million lbs/hr of fluid at atemperature of 293 0 F from which the project willgenerate approximately 69 million kWh per year.Electricity generated by the power plant will bepurchased by SCE under a Standard Offer No. 4Power Sales Agreement. Revenues for the firstten (10) years of operations will beapproximately $75 million.

B. Stillwater Geothermal INevada

Churchill County,

Ormat has acquired geothermal resource rights inthe Stillwater KGRA which are capable ofsupporting a series of power plants. StillwaterGeothermal I, the first project which Ormat willdevelop in the Stillwater KGRA, is scheduled forcompletion in 1988 and will consist of 14 OECs ata total project cost of $36 million.

A subsidiary of Ormat will supply the projectwith geothermal fluid and will provide long-termoperation and maintenance services for both thegeothermal field and power plant.

Ormat will lease the 12 MW power plant forminstitutional investors pursuant to a 20-yearleveraged lease. Projected revenues in the firstten years of operations are approximately $64million.

Stillwater Geothermal I holds a 30-year powerpurchase agreement with Sierra Pacific PowerCompany (SPPC) and will supply the utility withover 90 million kWh per year.

C. Puna Geothermal - Island of Hawaii

Ormat has acquired development rights for ageothermal project on the Island of Hawaii in thePuna District, approximately 21 miles southeastof the City of Hilo. The Puna District containsproven geothermal reserves and offers tremendousdevelopment potential. The State of Hawaii hasidentified the development of this resource asessential to achieving the State's goal ofdecreasing energy dependence and has passedlegislation designed to encourage the developmentof the Puna reserves.

Ormat's first power plant will have a totalproject cost of approximately $90 million andwill be designed to use two-phase geothermalsteam and water to drive a hybrid steam/binaryturbine generator with a gross capacity rating of30 megawatts. The electrical output will be soldto Hawaiian Electric Light Company (HELCO)pursuant to the terms of a 35-year power purchaseagreement. Power plant operations of the firstphase of the Puna Geothermal development willbegin in 1989.

Ormat will pursue the development of additionalpower plants on the acreage which it controls inthe Puna District during 1989, and will benefitfrom its position of being the first developer togain access to this resource to producecommercial quantities of electricity.

Due to the unique development opportunities inthe Puna District, a number of financing optionswill be available to Ormat and this resource areawill prOVide the greatest growth opportunitiesfor the company.

5. ENGINEERING

An Ormat Modular Power Plant is comprised of a numberof Ormat Energy Converter (OEC) modules which operateon a subcritical organic Rankine cycle. Thesubcritical cycle results in lower parasitic lossesand internal pressures within the power plant. Thismeans that the equipment may be designed with greatersimplicity and higher reliability due to lowerstresses on the components.

In addition. a proprietary cascading principle is usedin the interconnection of the modules so to maximizethe overall efficiency of the power plant. With thecascading principle implemented, should one module ofthe power plant be shut down for maintenance, theremaining modules will utilize nearly the fullgeothermal fluid flow to operate at increased powerlevels. The result is that nearly full capacity maybe maintained even during periods when majormaintenance is being performed on the modules.

Because factory integrated power plant modules aregenerally employed to construct the full plant, ashorter project implementation period may beanticipated. In fact, it is only the use of thefactory integrated module OEC units which allows Ormatto propose the execution of projects within arelatively short time frame. with a high degree ofconfidence.

In summary, the Ormat module approach is characterizedby: (a) flexibility in terms of matching a powerplant to a resource; (b) rapid implementation withshorter design and construction periods; (c) loweron-site construction costs thus making the overallproject costs more predictable; and (d) operatingunit redundancy to maintain project revenues with ahigh degree of confidence.

Ormat uses conservative design criteria for redundancyin both equipment and well production capacity inorder to maintain maximum power generation capacitythroughout the life of the project.

6. PROJECT MANAGEMENT PLAN

Objective

The Projectobjectives:

Management Plan fulfills two major

1. It provides a baseline for the Project in termsof cost. schedule and technical milestones( scope); and

2. It explains the plans. organizations and systemsthat will be utilized in managing the Project.

Project M~agement Plan Guidelines

The Project Management Plan (PMP) sets forth theplans. organization and systems that those responsiblefor managing the Project will utilize and is thedetailed Project baseline and execution document. ThePMP may serve as a reference from which "ContractorManagement Plans" are developed describing themanagement methods. control systems. and proceduresthat will be used by contractors to perform thecontract effort. The content and extent of detail ofthe Project Management Plan will vary in accordancewith the actual size and type of Project and stage ofProject execution. Generally the PMP will be writtento reflect planning based on'the Project Summary WorkBreakdown Structure. The PMP shall be developed bythe managing organization. As a general rule. the PMPshall be completed and approved prior to starting theProject. The PMP shall be kept current as the Projectprogresses and review of the Plan. with appropriateupdating of sections. shall be made by the managingorganization to ensure that it is current. TheProject Management Plan will include:

a. Introductionb. Objectivesc. Management Organization and Responsibilitiesd. Work Plane. Work Breakdown Structuref. Scheduleg. Performance Criteriah. Cost and Manpower Estimatesi. Project Functional Support Requirements.j. Project Management. Measurement. and Planning and

Control Systemsk. Information and Reporting1. Procurement Planm. Test and Evaluation Plann. Environmental. Safety and Health Protection

Implementation Plan

CORPORATE RESUMES