Exhibit
10.1.6

FIFTH SUPPLEMENTAL INDENTURE

FIFTH SUPPLEMENTAL
INDENTURE (this ‘‘Supplemental Indenture’’),
dated as of April  26,  2006, among Ormat Funding Corp., a
Delaware corporation (the ‘‘Issuer’’), and
Union Bank of California, N.A., as trustee (the
‘‘Trustee’’) and as collateral agent (the
‘‘Collateral Agent’’), in each case, under the
Indenture referred to below.

WITNESSETH

WHEREAS,
the Issuer and the guarantors named therein have heretofore executed
and delivered to the Trustee an indenture (as supplemented, the
‘‘Indenture’’), dated as of February
13,  2004 providing for the issuance of
81⁄4% Senior Secured Notes due 2020 (the
‘‘Senior Secured
Notes’’);

WHEREAS, the Indenture provides that
under certain circumstances the Indenture may be supplemented or
amended by the Issuer, the Trustee and the Collateral
Agent;

WHEREAS, in accordance with the terms of the
Indenture, the Issuer has solicited, and obtained, the consent of the
Required Holders (as defined in the Indenture) of the Senior Secured
Notes to amend certain provisions of the Indenture;
and

WHEREAS, pursuant to Article VIII of the Indenture,
all conditions precedent provided for in the Indenture with respect to
the execution of this Supplemental Indenture have been complied with
and the Trustee is authorized to execute and deliver this Supplemental
Indenture.

NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto mutually covenant and
agree for the equal and ratable benefit of the Holders of the Senior
Secured Notes as follows:

1.    CAPITALIZED
TERMS.    Capitalized terms used herein without definition shall
have the meaning assigned to them in the
Indenture.

2.    AMENDMENT.    The parties hereby
agree to amend Section 4.03 of the Indenture, by deleting Section 4.03
and replacing it in its entirety by the following new
provision:

‘‘Section 4.03 Reporting
Requirements.    The Issuer shall deliver to the Trustee and the
Collateral Agent (and, upon request of a Holder (or owner of a
beneficial interest in a Global Note) shall deliver directly to such
Holder (or owner of a beneficial interest in a Global Note) (which
request may indicate that it is a continuing request for such
information until further notice from such Holder (or such owner of a
beneficial interest in a Global Note) to the
contrary):

(a)    As soon as available
but, in any event, within 45 days after the close of each of the first
three quarterly accounting periods in each fiscal year, a complete
unaudited consolidated balance sheet of the Issuer and its Subsidiaries
as at the end of such quarterly period with related statements of
income and capital and statements of cash flows for such quarterly
period and for the elapsed portion of the fiscal year ended with the
last day of such quarterly period, prepared in accordance with GAAP
(but without footnotes), consistently applied and setting forth
comparative unaudited figures for the related periods in the prior
fiscal year, all of which shall be accompanied by a certificate of an
Authorized Representative of the Issuer to the effect that such
financial statements present fairly the financial condition and results
of operation of the Issuer on the dates and for the periods indicated,
subject to normal year-end audit
adjustments;

(b)    As soon as
available but, in any event, within 90 days after the close of each
fiscal year, the following: (i) a consolidated balance sheet of the
Issuer and its Subsidiaries as at the end of such fiscal year with the
related statements of income and capital and statements of cash flows
for such fiscal year, in each case setting forth comparative figures
for the preceding fiscal year and certified by the Issuer's
certified independent accountants (the
‘‘Auditors’’) (all such statements











being in agreement with the Issuer's
books of account and prepared in accordance with GAAP, consistently
applied); and (ii) a report or other written communication from the
Auditors indicating whether, in the course of their regular audit of
the consolidated financial statements of the Issuer, the Auditors
obtained actual knowledge of any Default or Event of Default which has
occurred and is continuing (and, in the event the Auditors obtained any
such actual knowledge, indicating the nature of such Default or Event
of Default);

(c)    At the time of the
delivery of the financial statements provided for in clause (a) or (b)
immediately above, a certificate of an Authorized Officer of the Issuer
to the effect that, to such Authorized Officer's actual
knowledge, (i) no Default or Event of Default has occurred and is
continuing or, if any Default or Event of Default has occurred and is
continuing, specifying the nature and extent thereof and what action
the Issuer or any Guarantor is taking or proposes to take in response
thereto and (ii) such Person is in compliance with all of its material
obligations under the terms of the Financing Documents to which it is a
party or, if not, specifying the nature and extent thereof and what
action the Issuer or any Guarantor is taking or proposes to take in
response thereto;

(d) (i)    promptly,
but in all cases within three Business Days after the Issuer or any
Guarantor obtains actual knowledge thereof, notice of any event which
constitutes a Default or an Event of Default, specifying the nature of
such Default or Event of Default and any steps that the Issuer or any
such Guarantor is taking or proposes to take to remedy the same, and
(ii) promptly, and in any event within 3 Business Days after the Issuer
or any Guarantor obtains actual knowledge thereof, notice
of:

(A)    any litigation, arbitration
or governmental proceeding (other than any governmental proceeding in
the ordinary course of business) pending (x) against the Issuer or any
Guarantor or (y) with respect to any Transaction Document to which the
Issuer or such Guarantor is a party or, to the actual knowledge of the
Issuer or any Guarantor, which, in either case, individually or in the
aggregate could reasonably be expected to result in a Material Adverse
Effect;

(B)    the occurrence and
continuance of any Event of Loss, Event of Eminent Domain or Title
Event that could reasonably be expected to give rise to Loss Proceeds,
Eminent Domain Proceeds or Title Event Proceeds, as applicable, in an
amount in excess of $5.0
million;

(C)    any change in the
Authorized Representatives of the Issuer or any Guarantor, accompanied
by certified specimen signatures of any Authorized Representatives so
appointed;

(D)    any report, notice
or correspondence received or initiated by the Issuer or any Guarantor
relating to any Governmental Approval or any other license or
authorization necessary for the performance by the Issuer or any
Guarantor of its obligations under the Transaction Documents, which
report, notice, correspondence and other document is received or
initiated other than in the ordinary course of business and which could
reasonably be expected to result in a Material Adverse Effect;
or

(E)    any downgrade in the credit
rating of any provider of an Acceptable Letter of Credit below
Investment Grade.

In addition, the Issuer and the
Guarantors agree that they shall furnish to the Holders and to
prospective investors, upon the request of such Holders, the
information required to be delivered pursuant to Rule 144(A)(d)(4)
under the Securities Act so long as the Senior Secured Notes are not
freely transferable under the Securities Act.

The receipt
by the Trustee of any such reports and documents pursuant to this
Section 4.03 shall not constitute notice or constructive notice of any
information contained in such documents or determinable from
information contained in such documents, including the Issuer's
compliance with any covenants hereunder (as to which the Trustee is
entitled to rely exclusively on an Officers'
Certificate).









3.    REFERENCES TO AND EFFECT
ON INDENTURE.    (a) On and after the execution of this Supplemental
Indenture, each reference in the Indenture to ‘‘this
Indenture,’’ ‘‘hereunder,’’
‘‘hereof,’’ or words of like import referring
to the Indenture, shall mean and be a reference to the Indenture, as
amended by this Supplemental Indenture.

(b)    The
Indenture, as specifically amended by this Supplemental Indenture, is
and shall continue to be in full force and effect and is hereby in all
respects ratified and
confirmed.

4.    EFFECTIVENESS.    This Supplemental
Indenture shall be effective upon execution hereof by the Issuer, the
Trustee and the Collateral Agent.

5.    BENEFITS OF
THIS SUPPLEMENTAL INDENTURE.    Nothing in this Supplemental
Indenture, express or implied, shall give to any person, other than the
parties to the Indenture and their respective successors thereunder and
the Holders of the Notes, any benefit or any legal or equitable right,
remedy or claim under this Supplemental
Indenture.

6.    GOVERNING LAW. THE INTERNAL LAW OF
THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

7.    COUNTERPARTS.    The parties may sign
any number of copies of this Supplemental Indenture. Each signed copy
shall be an original, but all of them together represent the same
agreement.

8.    EFFECT OF HEADINGS.    The Section
headings herein are for convenience only and shall not affect the
construction hereof.

9.    THE TRUSTEE.    The
Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture
or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Issuer.









IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed and attested,
all as of the date first above written.

Dated: April 26,
2006





							
	 			ORMAT
FUNDING CORP.
	 			 			 
	 			By:			 /s/ Ran
Raviv
	 			 			Name:   Ran
Raviv
	 			 			Title:    Authorized
Representative
	 			 			 
	 			 			 
	 			UNION
BANK OF CALIFORNIA, N.A., as
Trustee
	 			 			 
	 			By:			 /s/ James
Myers
	 			 			Name:   James
Myers
	 			 			Title:    Vice
President
	 			 			 
	 			 			 
	 			UNION
BANK OF CALIFORNIA, N.A., as Collateral
Agent
	 			 			 
	 			By:			 /s/ James
Myers
	 			 			Name:   James
Myers
	 			 			Title:    Vice
President
	






[Signature Page to Fifth
Supplemental Indenture]