|  |
|--|
|  |
|  |
|  |
|  |

SECURITIESAND EXCHANGE COMMISSION

Washington, D.C.20549

|  |
|--|
|  |  |  |  |
|  |

FORM10-Q

(MarkOne)

|        |                                                                                       |
|--------|---------------------------------------------------------------------------------------|
|   | QUARTERLY REPORT PURSUANT TOSECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934 |

For the quarterly period ended March  31,2005

or

|        |                                                                                         |
|--------|-----------------------------------------------------------------------------------------|
|   | TRANSITION REPORTPURSUANT TO SECTION  13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF 1934 |

For the transition period from                                    to                                   

Commissionfile number: 333-121655

ORMAT FUNDINGCORP.

(Exact name of registrant as specifiedin itscharter)

|                                                             |  |                                       |  |  |  |  |
|-------------------------------------------------------------|--|---------------------------------------|--|--|--|--|
| DELAWARE                                                    |  | 88-0326081                            |
| (Stateor other jurisdiction ofincorporation ororganization) |  | (I.R.S. EmployerIdentificationNumber) |
|                                                             |

980 Greg Street, Sparks, Nevada89431

(Address of principal executiveoffices)

Registrant's telephone number, including areacode: (775) 356-9029

Indicate by check mark whether theregistrant: (1)  has filed all reports required to be filed bySection  13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2)  has beensubject to such filing requirements for the past 90days.

Yes       No   

Indicate bycheck mark whether the registrant is an accelerated filer (as definedin Rule  12b-2 of the ExchangeAct).

Yes       No   

As of thedate of this filing the registrant had 500 shares of its common stock,$1.00 par value, outstanding (all shares held by an affiliate of theregistrant).

|  |
|--|
|  |
|  |
|  |
|  |

----

ORMATFUNDING CORP.

FORM 10-Q FOR THE QUARTER ENDED MARCH31, 2005

TABLE OF CONTENTS

|            |  |                                                                                      |  |         |        |        |  |  |  |  |
|------------|--|--------------------------------------------------------------------------------------|--|---------|--------|--------|--|--|--|--|
|       |  |                                                                                 |  | PageNo. |
| **PARTI**  |  | **FinancialInformation**                                                             |  |    |   |   |
| ITEM1.     |  | CondensedConsolidated Financial Statements                                           |  |    | 4      |   |
| ITEM2.     |  | Management's Discussion and Analysis of FinancialCondition and Results of Operations |  |    | 13     |   |
| ITEM 3.    |  | Quantitative and QualitativeDisclosures about Market Risk                            |  |    | 23     |   |
| ITEM 4.    |  | Controls andProcedures                                                               |  |    | 23     |   |
| **PARTII** |  | **OtherInformation**                                                                 |  |    |   |   |
| ITEM1.     |  | Legal Proceedings                                                                    |  |    | 24     |   |
| ITEM2.     |  | Unregistered Sales of Equity Securities and Use ofProceeds                           |  |    | 24     |   |
| ITEM 3.    |  | Defaultsupon Senior Securities                                                       |  |    | 24     |   |
| ITEM4.     |  | Submission of Matters to a Vote of SecurityHolders                                   |  |    | 24     |   |
| ITEM 5.    |  | OtherInformation                                                                     |  |    | 24     |   |
| ITEM6.     |  | Exhibits and Reports on Form8-K                                                      |  |    | 24     |   |
|            |

----

Certain Definitions

Unless the context otherwise requires, all references in thisquarterly report to "Ormat Funding" refer toOrmat Funding Corp. and not to any of its subsidiaries or affiliates;"Ormat," "we,""our," "ours" and"us" refer to Ormat Funding and itssubsidiaries on a consolidated basis; "OrmatNevada" refers to Ormat Nevada Inc., our direct parentcompany; "Ormat Technologies" and"OTec" refers to Ormat Technologies, Inc.,the parent company of Ormat Nevada; and "OrmatIndustries" refers to Ormat Industries Ltd., our ultimateparent company. Unless the context otherwise requires,"plants" refers to the various powergenerating plants owned and/or operated by our subsidiaries or theentities in which they hold equity interests, and"units" refers to particular power generatingunits at those plants. We refer to a group of plants and the geothermalresource associated with them in a certain geographic area as a"project." The "Senior SecuredNotes" refers to our 8 1/4% Senior Secured Notesdue 2020 that were sold in February2004.

3

----

PART I

FINANCIAL INFORMATION

ITEM1.    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ORMAT FUNDING CORP. AND SUBSIDIARIES (A Wholly OwnedSubsidiary of Ormat Nevada, Inc.) CONDENSED CONSOLIDATED BALANCESHEETS

|                                                                                               |  |                      |         |                  |  |        |         |        |  |  |
|-----------------------------------------------------------------------------------------------|--|----------------------|---------|------------------|--|--------|---------|--------|--|--|
|                                                                                          |  | March 31,2005        |         | December 31,2004 |
|                                                                                          |  | (Unaudited)          |         |             |
|                                                                                          |  | (dollarsinthousands) |
| **Assets**                                                                                    |  |
| Currentassets:                                                                                |  |
| Cash                                                                                          |  | $                    | 4       |             |  | $      | 3       |   |
| Restrictedcash, cash equivalents and marketablesecurities                                     |  |                 | 12,892  |             |  |   | 31      |   |
| Accountsreceivable                                                                            |  |                 | 7,003   |             |  |   | 7,404   |   |
| Prepaidexpenses andother                                                                      |  |                 | — |             |  |   | 41      |   |
| Totalcurrentassets                                                                            |  |                 | 19,899  |             |  |   | 7,479   |   |
| Restricted cash,cash equivalents and marketablesecurities                                     |  |                 | 12,374  |             |  |   | 19,339  |   |
| InvestmentinPartnership                                                                       |  |                 | 37,060  |             |  |   | 36,361  |   |
| Depositsand other                                                                             |  |                 | 2,770   |             |  |   | 2,850   |   |
| Property,plant and equipment,net                                                              |  |                 | 140,061 |             |  |   | 142,468 |   |
| Construction-in-process                                                                       |  |                 | 17,073  |             |  |   | 6,823   |   |
| Deferredfinancing costs,net                                                                   |  |                 | 9,406   |             |  |   | 9,582   |   |
| Intangible assets,net                                                                         |  |                 | 10,085  |             |  |   | 10,281  |   |
| Totalassets                                                                                   |  | $                    | 248,728 |             |  | $      | 235,183 |   |
| **Liabilitiesand Stockholder'sEquity**                                                        |  |                 |    |             |  |   |    |   |
| Currentliabilities:                                                                           |  |                 |    |             |  |   |    |   |
| Accountspayable and accruedexpenses                                                           |  | $                    | 10,394  |             |  | $      | 7,064   |   |
| Currentportion of long-termdebt                                                               |  |                 | 6,090   |             |  |   | 6,090   |   |
| O&Mpayable toParent                                                                       |  |                 | 12,048  |             |  |   | 4,318   |   |
| Totalcurrentliabilities                                                                       |  |                 | 28,532  |             |  |   | 17,472  |   |
| Long-termdebt, net of currentportion                                                          |  |                 | 183,399 |             |  |   | 183,399 |   |
| Long-termsubordinated loan from Parent                                                        |  |                 | 9,853   |             |  |   | 8,216   |   |
| Deferred income taxes                                                                         |  |                 | 6,338   |             |  |   | 6,052   |   |
| Asset retirementobligation                                                                    |  |                 | 5,521   |             |  |   | 5,429   |   |
| Totalliabilities                                                                              |  |                 | 233,643 |             |  |   | 220,568 |   |
| Commitmentsand contingencies (Note5)                                                          |  |                 |    |             |  |   |    |   |
| Stockholder'sequity:                                                                          |  |                 |    |             |  |   |    |   |
| Common stock, parvalue $1 per share; 1000 shares authorized; 500 shares issued andoutstanding |  |                 | 1       |             |  |   | 1       |   |
| Retainedearnings                                                                              |  |                 | 15,055  |             |  |   | 14,614  |   |
| Accumulatedother comprehensive income                                                         |  |                 | 29      |             |  |   | — |   |
| Total stockholder'sequity                                                                     |  |                 | 15,085  |             |  |   | 14,615  |   |
| Totalliabilities and stockholder'sequity                                                      |  | $                    | 248,728 |             |  | $      | 235,183 |   |
|                                                                                               |

Theaccompanying notes are an integral part of these condensed consolidatedfinancial statements.

4

----

ORMAT FUNDING CORP. ANDSUBSIDIARIES (A Wholly Owned Subsidiary of Ormat Nevada,Inc.) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVEINCOME(Unaudited)

|                                                                  |  |                             |        |         |  |        |         |         |  |  |
|------------------------------------------------------------------|--|-----------------------------|--------|---------|--|--------|---------|---------|--|--|
|                                                             |  | Three Months Ended March31, |
|                                                             |  | 2005                        |        | 2004    |
|                                                             |  | (dollarsinthousands)        |
| Revenues:                                                        |  |                        |   |    |  |   |    |    |
| Energyandcapacity                                                |  | $                           | 11,073 |    |  | $      | 10,682  |    |
| Leaseportion of energy andcapacity                               |  |                        | 3,161  |    |  |   | 1,628   |    |
| Totalrevenues                                                    |  |                        | 14,234 |    |  |   | 12,310  |    |
| Costof revenues:                                                 |  |
| Energy andcapacity                                               |  |                        | 8,472  |    |  |   | 7,126   |    |
| Leaseportion of energy andcapacity                               |  |                        | 1,237  |    |  |   | 648     |    |
| Totalcost ofrevenues                                             |  |                        | 9,709  |    |  |   | 7,774   |    |
| Grossmargin                                                      |  |                        | 4,525  |    |  |   | 4,536   |    |
| General andadministrativeexpenses                                |  |                        | 514    |    |  |   | 439     |    |
| Operatingincome                                                  |  |                        | 4,011  |    |  |   | 4,097   |    |
| Otherincome (expense):                                           |  |
| Interestincome                                                   |  |                        | 137    |    |  |   | 23      |    |
| Interestexpense                                                  |  |                        | (4,169 | )  |  |   | (3,133  | )  |
| Income(loss) before income taxes and equity in income ofinvestee |  |                        | (20    | )  |  |   | 987     |    |
| Income taxprovision                                              |  |                        | 8      |    |  |   | (378    | )  |
| Equity in incomeofinvestee                                       |  |                        | 453    |    |  |   | 389     |    |
| Netincome                                                        |  |                        | 441    |    |  |   | 998     |    |
| Othercomprehensive income:                                       |  |
| Unrealized gain onmarketable securities, net of taxes of$17,000  |  |                        | 29     |    |  |   | — |    |
| Comprehensiveincome                                              |  | $                           | 470    |    |  | $      | 998     |    |
|                                                                  |

Theaccompanying notes are an integral part of these condensed consolidatedfinancial statements.

5

----

ORMAT FUNDING CORP. ANDSUBSIDIARIES (A Wholly Owned Subsidiary of Ormat Nevada,Inc.) CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER'SEQUITY

|                                                                                             |  |                                     |         |                  |  |                                     |         |        |  |        |         |        |  |        |         |        |  |        |        |        |  |  |
|---------------------------------------------------------------------------------------------|--|-------------------------------------|---------|------------------|--|-------------------------------------|---------|--------|--|--------|---------|--------|--|--------|---------|--------|--|--------|--------|--------|--|--|
|                                                                                        |  |     CommonStock |         | RetainedEarnings |  | AccumulatedOtherComprehensiveIncome |         | Total  |
|                                                                                        |  | Shares                              |         | Amount           |  |
|                                                                                        |  | (dollarsin thousands)               |
| **Balance at December 31,2004**                                                             |  |                                | 500     |             |  | $                                   | 1       |   |  | $      | 14,614  |   |  | $      | — |   |  | $      | 14,615 |   |
| Netincome(unaudited)                                                                        |  |                                | — |             |  |                                | — |   |  |   | 441     |   |  |   | — |   |  |   | 441    |   |
| Unrealizedgain on marketable securities available-for-sale, net of related taxes(unaudited) |  |                                | — |             |  |                                | — |   |  |   | — |   |  |   | 29      |   |  |   | 29     |   |
| **Balanceat March 31, 2005(unaudited)**                                                     |  |                                | 500     |             |  | $                                   | 1       |   |  | $      | 15,055  |   |  | $      | 29      |   |  | $      | 15,085 |   |
|                                                                                             |

Theaccompanying notes are an integral part of these condensed consolidatedfinancial statements.

6

----

ORMAT FUNDING CORP. ANDSUBSIDIARIES (A Wholly Owned Subsidiary of Ormat Nevada,Inc.) CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS(Unaudited)

|                                                                                 |  |                             |         |         |  |        |          |         |  |  |
|---------------------------------------------------------------------------------|--|-----------------------------|---------|---------|--|--------|----------|---------|--|--|
|                                                                            |  | Three Months Ended March31, |
|                                                                            |  | 2005                        |         | 2004    |
|                                                                            |  | (dollarsin thousands)       |
| **Cash flows from operatingactivities:**                                        |  |                        |    |    |  |   |     |    |
| Netincome                                                                       |  | $                           | 441     |    |  | $      | 998      |    |
| Adjustmentsto reconcile net income to net cash provided by operatingactivities: |  |
| Depreciation                                                                    |  |                        | 2,497   |    |  |   | 1,899    |    |
| Amortization                                                                    |  |                        | 452     |    |  |   | 454      |    |
| Accretionof asset retirementobligation                                          |  |                        | 92      |    |  |   | 74       |    |
| Equity in income ofinvestee                                                     |  |                        | (453    | )  |  |   | (389     | )  |
| Deferred incometaxprovision                                                     |  |                        | (8      | )  |  |   | 378      |    |
| Changesin operating assets and liabilities, net ofacquisitions:                 |  |
| Accountsreceivable                                                              |  |                        | 401     |    |  |   | (1,034   | )  |
| Prepaidexpenses and other                                                       |  |                        | 41      |    |  |   | 319      |    |
| Accountspayable and accruedexpenses                                             |  |                        | 3,330   |    |  |   | 73       |    |
| Payable to Parentfor operatingactivities                                        |  |                        | 1,300   |    |  |   | 2,162    |    |
| Netcash provided by operatingactivities                                         |  |                        | 8,093   |    |  |   | 4,934    |    |
| **Cashflows from investingactivities:**                                         |  |
| Net change inrestricted cash, cash equivalents and marketablesecurities         |  |                        | (5,850  | )  |  |   | (57,228  | )  |
| Capitalexpenditures                                                             |  |                        | — |    |  |   | (276     | )  |
| Repaymentson advances toPartnership                                             |  |                        | 31      |    |  |   | —  |    |
| Deposits andother                                                               |  |                        | 80      |    |  |   | (2,437   | )  |
| Cash paid foracquisition                                                        |  |                        | — |    |  |   | (74,367  | )  |
| Netcash used in investingactivities                                             |  |                        | (5,739  | )  |  |   | (134,308 | )  |
| **Cashflows from financingactivities:**                                         |  |
| Borrowings fromParent for capitalexpenditures                                   |  |                        | — |    |  |   | 37,091   |    |
| Repaymentof long-term subordinated loan fromParent                              |  |                        | (2,273  | )  |  |   | (88,183  | )  |
| Proceedsfrom issuance of long-termdebt                                          |  |                        | — |    |  |   | 190,000  |    |
| Repayments oflong-termdebt                                                      |  |                        | — |    |  |   | (594     | )  |
| Deferred debtissuancecosts                                                      |  |                        | (80     | )  |  |   | (8,938   | )  |
| Netcash provided by (used in) financingactivities                               |  |                        | (2,353  | )  |  |   | 129,376  |    |
| Netincrease in cash                                                             |  |                        | 1       |    |  |   | 2        |    |
| Cash atbeginning ofperiod                                                       |  |                        | 3       |    |  |   | 3        |    |
| Cashat end ofperiod                                                             |  | $                           | 4       |    |  | $      | 5        |    |
| **Supplementalnon-cash activity:**                                              |  |
| Capital expenditurenot yet invoiced by theParent                                |  | $                           | 10,340  |    |  | $      | —  |    |
|                                                                                 |

The accompanying notes are anintegral part of these condensed consolidated financialstatements.

7

----

ORMATFUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of OrmatNevada Inc.)NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS(Unaudited)

NOTE 1 – BASIS OF PRESENTATION

These unauditedcondensed consolidated interim financial statements of Ormat FundingCorp. ("OFC") and its subsidiaries (the"Company") have been prepared in accordancewith accounting principles generally accepted in the United States ofAmerica and pursuant to the rules and regulations of the United StatesSecurities and Exchange Commission. Accordingly, they do not containall the information and notes required by accounting principlesgenerally accepted in the United States of America for completefinancial statements. In the opinion of management, the unauditedcondensed consolidated interim financial statements reflect alladjustments, which include only normal recurring adjustments, necessaryfor a fair statement of the Company's consolidated financialposition as of March 31, 2005, and consolidated results of operationsand cash flows for the three-month periods ended March 31, 2005 and2004.

The financial data and other information disclosed inthese notes to the condensed consolidated financial statements relatedto these periods are unaudited. The results for the three months endedMarch 31, 2005 are not necessarily indicative of the results to beexpected for the year ending December 31, 2005.

These condensedconsolidated interim financial statements should be read in conjunctionwith the audited consolidated financial statements and notes theretoincluded in the Company's annual report on Form 10-K for the yearended December 31, 2004. The condensed consolidated balance sheet as ofDecember 31, 2004 is derived from the audited consolidated financialstatements for the period ended December 31, 2004.

Dollaramounts, in the notes to these financial statements are rounded to theclosest $1,000.

Concentration of credit risk

Financialinstruments that potentially subject the Company to a concentration ofcredit risk consist principally of temporary cash investments andaccounts receivable.

The Company places its temporary cashinvestments with high credit quality financial institutions located inthe U.S. At March 31, 2005 and December 31, 2004, the Company haddeposits in one U.S. financial institution, in which deposits werefederally insured up to $100,000.

All of the Company'srevenues, and the related receivable balances, are earned from twopower companies: Southern California Edison Company("SCE") and Sierra Pacific Power Company("SPPC"). Revenues from SCE and SPPC for thethree months ended March 31, 2005 and 2004 amounted to 42% and52%, and 58% and 48%, respectively. The Companyperforms ongoing credit evaluations of its customers' financialcondition. The Company has historically been able to collect on all ofits receivable balances, and accordingly, no provision for doubtfulaccounts has been made.

NOTE 2 – SIGNIFICANT ACCOUNTINGPOLICIES

Marketable securities

Marketable securitiesconsist of debt securities (preferred auction rated securities). TheCompany accounts for such securities in accordance with Statement ofFinancial Accounting Standards ("SFAS") No.115, Accounting for Certain Investments in Debt and EquitySecurities. The Company determines the appropriate classificationof all marketable securities as held-to-maturity, available-for-sale ortrading at the time of the purchase and re-evaluates suchclassification at each balance sheet date. At March 31, 2005, all ofthe Company's investments in marketable securities wereclassified as available-for-sale securities and as a result, werereported at their fair value upon the 

8

----

ORMATFUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of OrmatNevada Inc.)NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS(Unaudited)

quoted market prices of such securities atquarter end. Net unrealized gains or losses are reported as a componentof accumulated other comprehensive income in stockholder'sequity. Net realized gains or losses on trading securities are reportedin interest income. The net unrealized gains at March 31, 2005 were$29,000, net of related taxes of $18,000.

Comprehensive incomereporting

The Company accounts for comprehensive income inaccordance with SFAS No. 130, Reporting Comprehensive Income,which requires comprehensive income and its components to be reportedwhen a company has items of other comprehensive income. Comprehensiveincome includes net income plus other comprehensive income, which forthe Company consists of unrealized gains or losses on marketablesecurities available-for-sale, net of related taxes.

Newaccounting pronouncement

SFAS No. 153 – Exchange ofNonmonetary Assets

In December 2004, the FinancialAccounting Standards Board ("FASB") issuedSFAS No. 153, Exchanges of Nonmonetary Assets – An Amendmentof APB Opinion No. 29. SFAS No. 153 amends APB Opinion No. 29,Accounting for Nonmonetary Transactions. The amendments made bySFAS No. 153 are based on the principle that exchanges of nonmonetaryassets should be measured based on the fair value of the assetsexchanged. Further, the amendments eliminate the exception fornonmonetary exchanges of similar productive assets and replace it witha general exception for exchanges of nonmonetary assets that do nothave commercial substance. The provisions in SFAS No.153 are effectivefor nonmonetary asset exchanges occurring in fiscal periods beginningafter June 15, 2005 (July 1, 2005 for the Company). Early applicationof SFAS No.153 is permitted. The provisions of SFAS No.153 shall beapplied prospectively. The Company does not expect SFAS No.153 to havea material impact on its results of operations and financial positionin future periods.

NOTE 3 – INVESTMENT INPARTNERSHIP

The Company has 50% ownershipinterest in Mammoth-Pacific, LP ("Mammoth"),which is comprised of three geothermal power plants, with a combinedgenerating capacity of 25 MW, located near the city of Mammoth,California ("Mammoth Project"). A $9.3million basis difference is amortized over the remaining useful life ofthe property, plant and equipment and the power purchase agreements,which range from 12 to 17 years. The Company's Parent operatesand maintains the geothermal power plants under an operating andmaintenance agreement The Company's 50% ownership interestin Mammoth is accounted for under the equity method of accounting asthe Company has the ability to exercise significant influence, but notcontrol, over Mammoth.

The condensed financial position andresults of operations of Mammoth are summarizedbelow:

|                          |  |               |        |                 |  |        |        |        |  |  |
|--------------------------|--|---------------|--------|-----------------|--|--------|--------|--------|--|--|
|                     |  | March31,2005  |        | December31,2004 |
|                     |  | (inthousands) |
| Condensed balancesheets: |  |
| Currentassets            |  | $             | 13,473 |            |  | $      | 11,088 |   |
| Non-currentassets        |  |          | 82,812 |            |  |   | 83,944 |   |
| Currentliabilities       |  |          | 990    |            |  |   | 924    |   |
| Non-currentliabilities   |  |          | 3,797  |            |  |   | 3,774  |   |
| Partners'Capital         |  |          | 91,498 |            |  |   | 90,334 |   |
|                          |

9

----

ORMATFUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of OrmatNevada Inc.)NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS(Unaudited)

|                                                |  |                            |       |         |  |        |       |         |  |  |
|------------------------------------------------|--|----------------------------|-------|---------|--|--------|-------|---------|--|--|
|                                           |  | ThreeMonths Ended March31, |
|                                           |  | 2005                       |       | 2004    |
|                                           |  | (inthousands)              |
| Condensed statements ofoperations:             |  |
| Revenues                                       |  | $                          | 3,967 |    |  | $      | 3,892 |    |
| Grossmargin                                    |  |                       | 1,212 |    |  |   | 1,013 |    |
| Netincome                                      |  |                       | 1,164 |    |  |   | 958   |    |
| Company'sequity in income of Mammoth:          |  |
| 50% of Mammothnet income                       |  | $                          | 582   |    |  | $      | 479   |    |
| Plusamortization of the equity basisdifference |  |                       | 148   |    |  |   | 148   |    |
|                                           |  |                       | 730   |    |  |   | 627   |    |
| Lessincometaxes                                |  |                       | (277  | )  |  |   | (238  | )  |
| Total                                          |  | $                          | 453   |    |  | $      | 389   |    |
|                                                |

NOTE4 – SENIOR SECURED NOTES

On February 13, 2004, theCompany completed the issuance of 81⁄4% senior securednotes (the "Notes" or "SeniorSecured Notes") pursuant to an exempt offering under Rule144A and Regulation  S of the Securities Act of 1933, as amended(the "Offering"), amounting to $190 million,and received net cash proceeds of approximately $179.7 million afterdeduction of deferred bond issuance costs of approximately $10.3million, which have been included in deferred financing costs atDecember 31, 2004. The Notes have a final maturity date of December 30,2020. Principal and interest on the Notes are payable in semi-annualpayments that commenced on June 30, 2004. The Notes are collateralizedby substantially all of the assets of the Company and fully andunconditionally guaranteed by all of the wholly owned subsidiaries ofthe Company, and (with certain exceptions) by all real property,contractual rights, revenues and bank accounts, intercompany notes,certain insurance policies and guarantees of the Company. There arevarious restrictive covenants under the Notes, which includelimitations on additional indebtedness and payment of dividends.

The Company may redeem the Notes, in whole or in part, at any timeat redemption price equal to the principal amount of the Notes to beredeemed plus accrued interest, premium and liquidated damages, if any,plus a "make-whole" premium. Upon certainevents, as defined in the indenture governing the Notes, the Companymay be required to redeem a portion of the Notes at a redemption priceranging from 100% to 101% of the principal amount of theNotes being redeemed plus accrued interest, premium and liquidateddamages, if any.

A registration statement on Form S-4 relatingto the Notes was declared effective by the Securities and ExchangeCommission on February 9, 2005. Pursuant to the registration statement,the Company made an offer to the holders of the Notes to exchange themfor publicly registered exchange notes with substantially identicalterms until March 11, 2005. On March 16, 2005 the exchange offer wascompleted.

As required under the terms of the Notes, the Companyhas restricted cash accounts, consisting of the following:

Galena's construction reserve

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | As required under the terms of the Notes, theCompany has set aside approximately $25.8 million ($19.4 million atMarch 31, 2005, of which $7.0 million has been classified as current onthe balance sheet), to replace the existing equipment at the Steamboat1/1A project with more efficient equipment, in order to optimize thegeothermal resources available. After such replacement, the Companywill rename the Steamboat 1/1A project as the Galena project. TheCompany expects the construction will be complete and the project willachieve commercial operations by the end of 2005. |

10

----

ORMATFUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of OrmatNevada Inc.)NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS(Unaudited)

Debt service reserve

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The Company maintains an account to fund anamount sufficient to pay scheduled debt service amounts, includingprincipal and interest, due under the terms of the Notes in thefollowing six months. As of December 31, 2004, the restricted cashaccounts have been replaced by a letter of credit which was issued bythe Parent on behalf of the Company on July 1, 2004 and December 30,2004 in the total amount of approximately $10.8 million (see Note5). |

Revenue reserve

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The Company deposits all revenues receivedinto the revenue account. Such amounts are used to pay operatingexpenses and fund the debt service reserve account, but the funds areonly available to the Company upon submission of draw requests by theCompany to the bank. As such amounts are not fully unrestricted to useby the Company, they have been classified as restricted (current) inthe balance sheets. As of March 31, 2005, the balance of such accountwas $5.9 million. |

The payment obligation under the Notes areguaranteed by ORNI 1 LLC ("ORNI 1"), ORNI 2LLC ("ORNI 2"), ORNI 7 LLC("ORNI 7"), OrMammoth Inc.("OrMammoth"), and Ormesa LLC("Ormesa"), all wholly owned subsidiaries ofthe Company, as of March 31, 2005. Such guarantees are full,unconditional and joint and several. The Company's sole purposeis to hold 100% ownership interest in ORNI 1, ORNI 2, ORNI 7,Ormesa, and OrMammoth, and the Company does not have any independentassets or operations. ORNI 1 and ORNI 2's sole purpose is to eachhold a 50% ownership interest in Brady Power Partners. ORNI7's sole purpose is to hold 100% ownership interest inSteamboat Geothermal LLC and Steamboat Development Corp.OrMammoth's sole purpose is to hold a 50% ownershipinterest in Mammoth-Pacific L.P.

NOTE 5 – COMMITMENTS ANDCONTINGENCIES

LOC Agreement

The Parent has aletter of credit and loan agreement ("LOCAgreement") with a bank pursuant to which the bank agreedto issue one or more letters of credit aggregating to $15 million. TheLOC Agreement expires on June 30, 2007, which shall be extended forsuccessive one-year periods unless notice is provided by either theParent or the bank to the contrary. In the event that the bank isrequired to pay on a letter of credit drawn by the beneficiary thereof,such letter of credit converts to a loan, bearing interest at LIBORplus 4.0%, to be repaid in equal installments at the end of eachof the next four quarters. There are various restrictive covenants inthe LOC Agreement, which include maintaining certain levels of tangiblenet worth, leverage ratio, and minimum coverage ratio. At each of March31, 2005 and December 31, 2004, letters of credit amounting to $10.8million were issued and outstanding under the LOC Agreement, which wereused to replace cash on deposit in reserve funds that were used as apledge against the Notes.

Contingencies

Inresponse to an order issued by a California State Court of Appeal, theCalifornia Public Utilities Commission("CPUC"), has commenced an administrativeproceeding in order to address short run avoided cost("SRAC") pricing for Qualifying Facilitiesfor the period spanning from December 2000 to March 2001. The courtdirected that the CPUC modify SRAC pricing on a retroactive basis tothe extent that the CPUC determined that SRAC prices were notsufficiently "accurate" or"correct." On February 25, 2005, the CPUCissued a draft decision affirming that SRAC priced during the disputedperiod were corrected and compliant with the Public Utility RegulatedPolicies Act ("PURPA") requirements and thatno retroactive adjustments are warranted. Comments on the draft may befiled and a final decision from the CPUC has not yet been issued. Ifthe SRAC prices charged during the period in question were determinedby the CPUC to not be "accurate" or"correct," retroactive price 

11

----

ORMATFUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of OrmatNevada Inc.)NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS(Unaudited)

adjustments could be required for any of theCompany's Qualifying Facilities in California whose payments aretied to SRAC pricing, including the Mammoth and Ormesa projects.Currently it is not possible to predict the final outcome of suchproceeding; however, any retroactive price adjustment required to bemade in relation to any of the Company's projects may requiresuch projects to make refund payments or charge less for future sales,which could materially and adversely effect the business, the financialcondition, future results and cash flow of the Company.

Steamboat Geothermal LLC ("SG") is partyto litigation related to a dispute over amounts owed to the plaintiffsunder certain operating agreements. SG has initiated settlementdiscussions with the plaintiff and the Company believes that anyoutcome will not have a material impact on the Company's resultsof operations.

The Company is a defendant in various other legalsuits in the ordinary course of business. It is the opinion of theCompany's management that the expected outcome of these matters,individually or in the aggregate, will not have a material effect onthe results of operations and financial condition of the Company.

Certain of the Company's projects are subject to contestedFederal Energy Regulatory Commission ("FERC")rulings whereby an adverse outcome could result in a refund of aportion of previous revenues and/or a reduction in future revenues fromthose projects. The outcome of this matter cannot be predicted at thistime.

12

----

|              |                                                                                      |
|--------------|--------------------------------------------------------------------------------------|
| ITEM2.  | MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS |

This quarterlyreport on Form l0-Q contains forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Theseforward looking statements are based upon our current expectations andprojections about future events. When used in this report, the words"believe","anticipate","intend","estimate","expect", "should","may" and similar expressions, or thenegative of such words and expressions, are intended to identifyforward-looking statements, although not all forward-looking statementscontain such words or expressions. The forward-looking statements inthis report are primarily located in this Item 2:"Management's Discussion and Analysis of FinancialCondition and Results of Operations", but may be found inother locations as well. Such statements reflect our judgment as of thedate of this quarterly report with respect to future events, theoutcome of which is subject to certain risks and uncertainties,including but not limitedto:

|              |                                                                                        |
|--------------|----------------------------------------------------------------------------------------|
| •  | significant considerations, risksand uncertainties discussed in this quarterly report; |

|              |                                                                                                   |
|--------------|---------------------------------------------------------------------------------------------------|
| •  | operating risks, including equipmentfailures and the amounts and timing of revenues and expenses; |

|              |                                                                                                            |
|--------------|------------------------------------------------------------------------------------------------------------|
| •  | geothermal resource risk (such as the heatcontent of the reservoir, useful life and geological formation); |

|              |                                                                                                                |
|--------------|----------------------------------------------------------------------------------------------------------------|
| •  | environmental constraints on operationsand environmental liabilities arising out of past or presentoperations; |

|              |                                 |
|--------------|---------------------------------|
| •  | project delays orcancellations; |

|              |                                                                  |
|--------------|------------------------------------------------------------------|
| •  | financial marketconditions and the results of financing efforts, |

|              |                                                                                                                         |
|--------------|-------------------------------------------------------------------------------------------------------------------------|
| •  | political, legal, regulatory,governmental, administrative and economic conditions and developmentsin the United States; |

|              |                                                                               |
|--------------|-------------------------------------------------------------------------------|
| •  | theenforceability of the long-term power purchase agreements for ourprojects; |

|              |                            |
|--------------|----------------------------|
| •  | contract counterpartyrisk; |

|              |                                     |
|--------------|-------------------------------------|
| •  | weather and other naturalphenomena; |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | the impact of recent andfuture federal and state regulatory proceedings and changes, includinglegislative and regulatory initiatives regarding deregulation andrestructuring of the electric utility industry and incentives for theproduction of renewable energy, changes in environmental and other lawsand regulations to which our company is subject, as well as changes inthe application of existing laws and regulations; |

|              |                                |
|--------------|--------------------------------|
| •  | current and future litigation; |

|              |                                                                                                                                                                                             |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | competition from other similar geothermalenergy projects, including any such new geothermal energy projectsdeveloped in the future, and from alternative electricity producingtechnologies; |

|              |                                                                                   |
|--------------|-----------------------------------------------------------------------------------|
| •  | the effect of andchanges in economic conditions in the areas in which we operate; |

|              |                                                                                                                   |
|--------------|-------------------------------------------------------------------------------------------------------------------|
| •  | market or business conditions andfluctuations in demand for energy or capacity in the markets in whichwe operate; |

|              |                                                                                                                                                                                                |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | the direct or indirectimpact on our company's business resulting from terroristincidents or responses to such incidents, including the effect on theavailability of and premiums on insurance; |

|              |                                                                                                                                                                                                                                |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | the risk factors set forth in our annualreport on Form 10-K for the year ended December 31, 2004 and anyupdates contained herein which may have a significant impact on ourbusiness, operating results or financial condition; |

|              |                                                                                                                                                                                                                  |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | other uncertainties which are difficult topredict or beyond our control and the risk that we incorrectly analyzethese risks and forces or that the strategies we develop to addressthem could be successful; and |

13

----

|              |                                                                                                                    |
|--------------|--------------------------------------------------------------------------------------------------------------------|
| •  | other risks anduncertainties detailed from time to time in our filings with theSecurities and Exchange Commission. |

Investors are cautioned thatthese forward-looking statements are inherently uncertain. Should oneor more of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results or outcomes mayvary materially from those described herein. We undertake no obligationto update forward-looking statements even though our situation maychange in the future. Given these risks and uncertainties, readers arecautioned not to place undue reliance on such forward-lookingstatements.

The following discussion and analysis of ourfinancial condition and results of operations should be read togetherwith our condensed consolidated financial statements and related notesincluded elsewhere in this report and the "RiskFactors" section of our annual report on Form 10-K for theyear ended December 31, 2004 as well as those set forth in our pressrelease, reports and other filing made with Securities and ExchangeCommissions.

General

Overview

We are engaged in the geothermal energy powerbusiness. We were formed in December 2001, to develop, construct andown, through certain direct and indirect subsidiaries, clean,environmentally friendly geothermal power projects in the UnitedStates. Our business currently consists of our investment in powerplants producing electricity from geothermal resources. Our business ischaracterized by relatively predictable revenues generated by our powerplants pursuant to long-term power purchase agreements, with termswhich are generally up to 20 years.

During the three monthsended March 31, 2005, our total revenues generated by our wholly-ownedpower plants were $14.2 million. In addition, our 50% share inthe Mammoth project's revenues in such period was $2.0million.

When making decisions about potential acquisitions orthe development of new projects, our management typically focuses onthe internal rate of return of the relevant investment, relevanttechnical and geological matters and other relevant businessconsiderations. Additionally, our management evaluates our operatingprojects based on the performance of such projects in terms of revenuesand expenses in contrast to projects that are under development, whichour management evaluates based on costs attributable to each suchproject.

As a result of the acquisition of Steamboat 2/3 Projectwhich was completed in February 2004, our results for the periodscontained in the financial statements in this quarterly report may notbe comparable with each other.

Recent Developments

OnMarch 16, 2005, we completed an offering to exchange $1,000 principalamount of our Senior Secured Notes that were registered under theSecurities Act of 1933, as amended, for each $1,000 principal amount ofour then outstanding Senior Secured Notes that were issued on February13, 2004 in a capital markets offering subject to Rule 144A andRegulation S of the Securities Act of 1933, as amended. As of March 31,2005, there was $189.5 million in aggregate principal amount of SeniorSecured Notes outstanding.

On May 6, 2005, we completednegotiations for a new 25-year power purchase agreement with SouthernCalifornia Public Power Authority ("SCPPA")for the purchase of energy from our Ormesa project. Under thisagreement, 10 MW of power will be delivered from Ormesa to SCPPA for afixed price of $57.50/MWh. This price will escalate annually at a rateof 1.5% and includes the value for the environmental attributes,known as renewable energy credits, which will assist the SCPPA membercities comply with their respective renewable standards. In addition,if and when available, 30% of the Production Tax Creditsgenerated from the project will be shared with SCPPA. Deliveriespursuant the power purchase agreement are expected to begin in thefourth quarter of 2006. The parties are expected to enter into adefinitive agreement in the coming weeks.

14

----

Trends and Uncertainties

Thegeothermal industry in the United States has historically experiencedsignificant growth followed by a consolidation of owners and operatorsof geothermal power plants. During the 1990s, growth and development inthe geothermal industry occurred primarily in foreign markets and onlyminimal growth and development occurred in the United States. Since2001, there has been increased demand for energy generated fromgeothermal resources in the United States as production costs forelectricity generated from geothermal resources have become morecompetitive relative to fossil fuel generation due to increasing gasprices and as a result of newly enacted legislative and regulatoryincentives, such as state renewable portfolio standards and such as theproduction tax credit bill that allow owners of geothermal power plantsto claim credits on electricity sold during the first five (5) yearsafter a project achieves commercial operation. We see the increasingdemand for energy generated from geothermal and other renewableresources in the United States and the further introduction ofrenewable portfolio standards and the production tax credit as the mostsignificant trends affecting our industry today and in the immediatefuture. Our operations and the trends that from time to time impact ouroperations are subject to market cycles.

Although other trends,factors and uncertainties may impact our operations and financialcondition, including many that we do not or cannot foresee, we believethat our results of operations and financial condition for theforeseeable future will be affected by the following trends, factorsand uncertainties:

|              |                                                                                                                                                                                                                                                      |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We expect tocontinue to generate all of our revenues from the sale of electricityfrom our power plants. All of our current revenues from the sale ofelectricity are derived from fully-contracted payments under long-termpower purchase agreements. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Theviability of the geothermal resources utilized by our power plantsdepends on various factors such as the heat content of the geothermalreservoir, useful life of the reservoir (the term during which suchgeothermal reservoir has sufficient extractable fluids for ouroperations) and operational factors relating to the extraction of thegeothermal fluids. Our geothermal power plants may experience anunexpected decline in the capacity of their respective geothermalwells. Such factors, together with the possibility that we may fail tofind commercially viable geothermal resources in the future, representsignificant uncertainties we face in connection with ouroperations. |

|              |                                                                                                                                                                                                                                                                  |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We have experiencedsignificant growth through the acquisition of the Steamboat 2/3 projecton February 11, 2004 and we expect to experience additional growth dueto the enhancement of the Mammoth and Ormesa projects and theconstruction of the Galena project. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Weexpect to continue to benefit from the increasing demand for renewableenergy as a result of favorable legislation adopted by California andNevada (where all of our projects are located). In both states,relevant legislation currently requires that an increasing percentageof the electricity supplied by electric utility companies operating insuch states be derived from renewable energy resources until certainpre-established goals are met. We expect that the additional demand forrenewable energy from utilities in such states will create additionalopportunities for us to expand existingprojects. |

|              |                                                                                                                                                                                                                                     |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | As a result of the issuanceof our Senior Secured Notes on February 13, 2004, our interest expensefor the three months ended March 31, 2005 increased, as compared to ourinterest expense for the three months ended March 31, 2004. |

Revenues

All of our revenues are, and will continue to be,derived from payments under our subsidiaries' power purchaseagreements. Equity distributions due to us from our 50% interestin the Mammoth project are dependent upon payments under its powerpurchase agreements. Such revenues are subject to seasonal variations,as more fully described below in the section entitled"Seasonality".

Most of our powerpurchase agreements provide for the payment of capacity and energypayments. Generally, capacity payments are payments calculated based onthe amount of time that 

15

----

our power plants are available to generateelectricity. Some of our power purchase agreements provide for bonuscapacity payments in the event that we are able to exceed certaintarget levels and the potential forfeiture of payments if we fail tomeet minimum target levels. Energy payments, on the other hand, arepayments calculated based on the amount of electrical energy deliveredto the relevant power purchaser at a designated delivery point. Therates applicable to such payments are either fixed (subject, in certaincases, to certain adjustments) or are based on the relevant powerpurchaser's short run avoided costs (the incremental costs thatthe power purchaser avoids by not having to generate such electricalenergy itself or purchase it from others).

As required byEmerging Issues Task Force No. 01-8, Determining Whether anArrangement Contains a Lease, we assessed all of our power purchaseagreements acquired since July 1, 2003, and concluded that theagreements related to our Steamboat 2/3 project contained a leaseelement requiring lease accounting. Accordingly, revenues related tothe lease element of the agreements are presented as"lease portion of energy and capacity"revenue, with the remaining revenue related to the production anddelivery of the energy presented as "energy andcapacity" revenue in our financial statements. As thelease revenue and the energy and capacity revenues are derived from thesame arrangement, we analyze such revenues, and related costs, on acombined basis for management purposes.

Seasonality

Thedemand for the electricity generated by our projects and the pricespaid for such electricity pursuant to our power purchase agreements aresubject to seasonal variations. The demand for electricity from theMammoth project and the Ormesa project is the highest in the summermonths of June through September, because the power purchaser for thoseprojects, Southern California Edison Company, delivers more electricityto its California markets during such period in order to meet demandfor air conditioning and other energy-intensive cooling systemsutilized during such summer months. The demand for electricity from theSteamboat complex and the Brady project is more balanced, consisting ofboth summer and winter peaks that reflect the greater temperaturevariation in Nevada. In California, the capacity rates payable pursuantto the applicable power purchase agreement are higher in the summermonths and as a result we receive higher revenues during such months.In contrast, there are no significant changes in prices during the yearpayable pursuant to our power purchase agreement for the Nevadaprojects. In the winter, due principally to the lower ambienttemperature, our power plants produce more energy and as a result wereceive higher energy revenues. However, the higher capacity paymentspayable by the power purchaser in California in the summer months as aresult of the increase in demand and in prices has a more significantimpact on our revenues than that of the higher energy revenuesgenerally generated in winter due to increased efficiency, and as aresult our revenues are generally higher in the summer than in thewinter.

Expenses

The principal expenses attributable toeach of our operating projects include expenses under the operationsand maintenance agreements between each project and Ormat Nevada, suchas salaries, lease expenses, royalties, geothermal fluid supply,startup and auxiliary electricity purchases, property tax andinsurance, and, for the California projects, transmission charges,scheduling charges and sweet water purchases for plant coolingtowers.

The principal project expenses under the operations andmaintenance agreement include:

|              |                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Foreach project other than the Mammoth project, a fixed monthly fee,subject to adjustments based on the Consumer Price Index, UrbanConsumers-West based on January 1 of each year, which covers all costsassociated with staffing, administration, ordinary maintenance andcertain incidental costs at each plant and routine replacement of partsand consumables (other than for the wells). |

|              |                                                                                                                                                                         |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | For each project other than the Mammothproject, actual cost and expenses plus a 10% mark-up for certain"extraordinary operation expenses." Theseextraordinary operation |

16

----

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | expenses include all major correctivemaintenance work, any modifications, additions, or deletions to theprojects' equipment, any cost incurred as a result of any changein law, authorizations, power purchase agreements, plant connectionagreement or in exercise of emergency management powers, any costincurred by Ormat Nevada with respect to our environmentalresponsibilities, and work in connection with the geothermal fields andwells described in the operations and maintenance agreement. |

|              |                                                                                                                                                                                                                                                                        |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Payments to government agencies andprivate parties for the use of geothermal resources and site leaseswhere plants are situated are recorded as a component of cost ofrevenues. For the three months ended March 31, 2005, such expenses wereless than 1% of revenues. |

|              |                                                                                                                                                                                                                                                                                                                                           |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Royalty payments are payments made ascompensation for the right to use certain geothermal resources and areincluded as a component of cost of revenues and are paid as apercentage of the revenues derived from the associated geothermalrights. For the three months ended March 31, 2005, royalties wereapproximately 2.7% of revenues. |

Under a fluid supplyagreement, Brady pays to Western States a royalty payment of 1%of the net revenues of the Desert Peak 1 plant derived from the sale ofelectricity under the Brady project's power purchase agreementand reimburses Western States for certain costs. These payments areincluded as a component of cost of revenues.

CriticalAccounting Policies

A comprehensive discussion of our criticalaccounting policies is included in the "Management'sDiscussion and Analysis of Financial Condition and Results ofOperations" section of our annual report on Form 10-K forthe year ended December 31, 2004.

MarketableSecurities

We invest our excess cash in marketablesecurities, which consist of debt securities (preferred auction ratedsecurities), and account for such securities in accordance withStatement of Financial Accounting Standards("SFAS") No. 115, Accounting for CertainInvestments in Debt and Equity Securities. We determine theappropriate classification of all marketable securities asheld-to-maturity, available-for-sale or trading at the time of thepurchase and re-evaluate such classification at each balance sheetdate. At March 31, 2005, all of our investments in marketablesecurities were classified as available-for-sale securities and as aresult, were reported at their fair value upon the quoted market pricesof such securities at quarter end. Net unrealized gains or losses onmarketable securities classified as available-for-sale are reported asa component of accumulated other comprehensive income instockholder's equity. Net realized gains or losses on tradingsecurities are reported in interest income.

New accountingPronouncement

Exchange of Non-monetary Assets

InDecember 2004, the Financial Accounting Standards Board("FASB") issued SFAS No. 153, Exchanges ofNon-monetary Assets – An Amendment of APB Opinion No. 29.SFAS No. 153 amends APB Opinion No. 29, Accounting forNon-monetary Transactions. The amendments made by SFAS No. 153 arebased on the principle that exchanges of non-monetary assets should bemeasured based on the fair value of the assets exchanged. Further, theamendments eliminate the exception for nonmonetary exchanges of similarproductive assets and replace it with a general exception for exchangesof nonmonetary assets that do not have commercial substance. Theprovisions in SFAS No.153 are effective for nonmonetary asset exchangesoccurring in fiscal periods beginning after June 15, 2005 (July 1, 2005for us).   Early application of SFAS No. 153 is permitted. Theprovisions of SFAS No.153 shall be applied prospectively.  We donot expect SFAS No.153 to have a material impact on our results ofoperations and financial position in future periods.

17

----

Results of Operations

Ourunaudited historical operating results in dollars and as a percentageof total revenues are presented in the tables below.

|                                                                  |  |                           |        |         |  |        |        |         |  |  |
|------------------------------------------------------------------|--|---------------------------|--------|---------|--|--------|--------|---------|--|--|
|                                                             |  | ThreeMonths EndedMarch31, |
|                                                             |  | 2005                      |        | 2004    |
|                                                             |  | (inthousands)             |
| **Statements of OperationsHistoricalData:**                      |  |                      |   |    |  |   |   |    |
| Revenues                                                         |  | $                         | 14,234 |    |  | $      | 12,310 |    |
| Cost ofrevenues                                                  |  |                      | 9,709  |    |  |   | 7,774  |    |
| Grossmargin                                                      |  |                      | 4,525  |    |  |   | 4,536  |    |
| General andadministrativeexpenses                                |  |                      | 514    |    |  |   | 439    |    |
| Operatingincome                                                  |  |                      | 4,011  |    |  |   | 4,097  |    |
| Otherincome (expense):                                           |  |                      |   |    |  |   |   |    |
| Interestincome                                                   |  |                      | 137    |    |  |   | 23     |    |
| Interestexpense                                                  |  |                      | (4,169 | )  |  |   | (3,133 | )  |
| Income(loss) before income taxes and equity in income ofinvestee |  |                      | (20    | )  |  |   | 987    |    |
| Income taxprovision                                              |  |                      | 8      |    |  |   | (378   | )  |
| Equity in incomeofinvestee                                       |  |                      | 453    |    |  |   | 389    |    |
| Netincome                                                        |  | $                         | 441    |    |  | $      | 998    |    |
|                                                                  |

|                                                                  |  |                           |        |         |  |        |        |         |  |  |
|------------------------------------------------------------------|--|---------------------------|--------|---------|--|--------|--------|---------|--|--|
|                                                             |  | ThreeMonths EndedMarch31, |
|                                                             |  | 2005                      |        | 2004    |
| **Statementsof Operations PercentageData:**                      |  |                      |   |    |  |   |   |    |
| Revenues                                                         |  |                      | 100.0  | %  |  |   | 100.0  | %  |
| Costofrevenues                                                   |  |                      | 68.2   |    |  |   | 63.2   |    |
| Grossmargin                                                      |  |                      | 31.8   |    |  |   | 36.8   |    |
| Generaland administrativeexpenses                                |  |                      | 3.6    |    |  |   | 3.5    |    |
| Operatingincome                                                  |  |                      | 28.2   |    |  |   | 33.3   |    |
| Otherincome (expense):                                           |  |                      |   |    |  |   |   |    |
| Interestincome                                                   |  |                      | 1.0    |    |  |   | 0.2    |    |
| Interestexpense                                                  |  |                      | (29.3  | )  |  |   | (25.5  | )  |
| Income(loss) before income taxes and equity in income ofinvestee |  |                      | (0.1   | )  |  |   | 8.0    |    |
| Income taxprovision                                              |  |                      | 0.0    |    |  |   | (3.1   | )  |
| Equity in incomeofinvestee                                       |  |                      | 3.2    |    |  |   | 3.2    |    |
| Netincome                                                        |  |                      | 3.1    | %  |  |   | 8.1    | %  |
|                                                                  |

Comparisonof the Three Months Ended March 31, 2005 and the Three Months EndedMarch 31, 2004.

Total Revenues

Total revenues for thethree months ended March 31, 2005 were $14.2 million, which representeda 15.6% or $1.9 million increase over total revenues of $12.3million for the three months ended March 31, 2004. The increase wasprincipally due to the acquisition of the Steamboat 2/3 project onFebruary 11, 2004, whose revenues for the three months ended March 31,2005, amounted to $4.2  million, as compared with $2.2 millionfor the three months ended March 31, 2004.

18

----

Total Cost of Revenues

Total costof revenues for the three months ended March 31, 2005 were $9.7million, which represented a 24.9% increase over total cost ofrevenues of $7.8 million for the three months ended March 31, 2004. Theincrease was principally due to the acquisition of the Steamboat 2/3project, as cost of revenues for the three months ended March 31, 2005included $2.1 million of expenses related to Steamboat 2/3 project,while for the three months ended March 31, 2004, $0.9 million from theSteamboat 2/3 project were included. The remaining $0.7 millionincrease in cost of revenues for the three months ended March 31, 2005was mainly due to $0.5 million additional costs relating to fieldmaintenance in the Ormesa project. Gross margins were 31.8% forthe three months ended March 31, 2005 compared to 36.8% for thethree months ended March 31, 2004. Such decrease was due to theincrease in cost of revenues as described above. The decrease in thegross margin of the Steamboat 2/3 project in the three months endedMarch 31, 2005 as compared to the period from February 11, 2005 (dateof acquisition of the Steamboat 2/3 project) to March 31, 2004, resultsprimarily from the timing of costs incurred.

General andAdministrative Expenses

General and administrative expenses forthe three months ended March 31, 2005 were $0.5  million comparedto $0.4 million for the three months ended March 31, 2004. The increaseof $0.1  million is due to the increased general andadministrative activity due to the acquisition of the Steamboat 2/3project on February 11, 2004.

Interest Expense

Interestexpense for the three months ended March 31, 2005 was $4.2 million,compared to $3.1  million for the three months ended March 31,2004. The increase was primarily due to interest expense on the SeniorSecured Notes which was $4.1 million for the three months ended March31, 2005 compared to $2.2 million for the period from February 13, 2004to March 31, 2004, offset by: (i)  decrease in interest expenseon the note payable to our parent to $0.1 million for the three monthsended March 31, 2005, from $0.6 million for the three months endedMarch 31, 2004, and (ii) decrease in interest expense on the Ormesaloan as a result of repayment on December 31, 2004 which resulted in nointerest expense for that item for the three months ended March 31,2005, compared to $0.3  million for the three months ended March31, 2004.

Income Taxes

Income tax provision for thethree months ended March 31, 2005 was $8,000 as compared with incometax provision of $0.4 million for the three months ended March 31,2004. The effective tax rates for each of the three months ended March31, 2005 and 2004 were 38%.

Equity in Income ofInvestee

Equity in income of investee was $0.5 million for thethree months ended March 31, 2005 as compared with $0.4 million for thethree months ended March 31, 2004, representing our 50%ownership interest in the income of Mammoth-Pacific L.P.

NetIncome

Net income was $0.4 million for the three months endedMarch 31, 2005 compared to net income of $1.0 million for the threemonths ended March 31, 2004. The decrease of $0.6 million in net incomewas primarily the result of a few offsetting factors, including: (i) adecrease of $0.1 million in operating income resulting primarily fromthe lower gross margins, (ii) a net increase of $1.0 million ininterest expenses, and (iii) a decrease of $0.4 million in income taxesresulting from the decrease in income before income taxes.

Liquidity and Capital Resources

Our principal sourcesof liquidity are derived from a combination of internally generatedcash and parent subordinated loans, supplemented with third partydebt.

19

----

Our estimated uses of funds are forplanned capital expenditures, described below, and for the repayment ofthe debt services related to the issuance of the Senior SecuredNotes.

On December 1, 2003, we entered into a loan agreementwith Ormat Nevada pursuant to which we may borrow up to $55 millionfrom time to time. The loan is due in 2021 and is payable only fromavailable cash flow, is subordinated to other debt and has beenclassified as non-current. Interest accrues on the unpaid principal ofthe loan amount at a rate per annum equal to the higher of 5% orthe applicable Federal rate (4.52% and 4.68% at March 31,2005 and December 31, 2004, respectively), and is added to theprincipal and is also due in 2021 or from available cash flow.

Our third-party debt is composed of project finance debt for thepurpose of refinancing projects or for the acquisition of our projects.On February 13, 2004, we issued the Senior Secured Notes in a capitalmarkets offering subject to Rule 144A and Regulation S of theSecurities Act of 1933, as amended, for the purpose of refinancing theacquisition cost of the Brady, Ormesa and Steamboat 1/1A projects, andthe financing of the acquisition cost of the Steamboat 2/3 project andMammoth project. On March 16, 2005, we exchanged these unregisterednotes for Senior Secured Notes with substantially identical terms thathave been registered under the Securities Act of 1933, as amended. Asof March 31, 2005, there was $189.5 million of Senior Secured Notesoutstanding. The Senior Secured Notes are collateralized bysubstantially all of our assets and the assets of our subsidiaries andis jointly and severally fully and unconditionally guaranteed by all ofour wholly owned subsidiaries. The collateral securing the SeniorSecured Notes consists of (with certain exceptions) all of our and ourwholly owned subsidiaries' real and personal property,contractual rights, revenues and bank accounts, intercompany notes andinsurance policies.

On December 31, 2004, Ormesa LLC, oursubsidiary, repaid in its entirety a senior secured loan in the amountof $13.1 million under its credit facility with United Capital, adivision of Hudson United Bank. The loan was secured by a firstpriority lien on the Ormesa project and this lien was releasedcontemporaneously with the repayment of the loan. In accordance withthe terms of our indenture governing the Senior Secured Notes,immediately upon the repayment of the loan, Ormesa executed a guaranteeof the Senior Secured Notes and granted a first priority lien on theOrmesa project and all other Ormesa assets in favor of the collateralagent for the benefit of the holders of the Senior Secured Notes. Werepaid the loan with amounts set aside in a cash escrow account thatwas funded from proceeds from the sale of the Senior Secured Notes.

Our management believes that the projects' generated cash willbe sufficient to address our liquidity. Additionally, at March 31,2005, we had an outstanding balance of $9.9 million from oursubordinated loan with Ormat Nevada, out of a total of $55 million, asdescribed above. Therefore, we may borrow, if required, up to $45.1million from Ormat Nevada in order to address other investmentrequirements.

Historical Cash Flow

The following tableset forth the components of our cash flows for the relevant periodsindicated:

|                                                   |  |                            |        |         |  |        |          |         |  |  |
|---------------------------------------------------|--|----------------------------|--------|---------|--|--------|----------|---------|--|--|
|                                              |  | ThreeMonths Ended March31, |
|                                              |  | 2005                       |        | 2004    |
|                                              |  | (inthousands)              |
| Net cash provided by operatingactivities          |  | $                          | 8,093  |    |  | $      | 4,934    |    |
| Net cashused in investingactivities               |  |                       | (5,739 | )  |  |   | (134,308 | )  |
| Netcash provided by (used in) financingactivities |  |                       | (2,353 | )  |  |   | 129,376  |    |
|                                                   |

Forthe Three Months ended March 31, 2005

Net cash provided byoperating activities for the three months ended March 31, 2005 was$8.1  million as compared with $4.9 million for the three monthsended March 31, 2004. Such increase was primarily due to: (i) anincrease of $4.6 million in accounts payable and accrued expenses(including payable to Parent) for the three months ended March 31, 2005as compared to an increase of $2.2 million for the three months endedMarch 31, 2004, mainly as a result of increase in accrued 

20

----

interest on the Senior Secured Notes, and(ii) a decrease of $0.4 million in accounts receivable for the threemonths ended March 31, 2005, as compared to an increase of $1.0 millionfor the three months ended March 31, 2004, as a result of theconsolidation of Steamboat 2/3 which was acquired on February 11, 2004.The increase was offset by a decrease in net income of $0.6 million asa result of the increase of $1.0 million in interest expenses.

Net cash used in investing activities for the three months endedMarch 31, 2005 was $5.7 million as compared with $134.3 million for thethree months ended March 31, 2004. Investing activities in the threemonths ended March 31, 2005 reflect an increase of $5.9 million inrestricted cash that will be used for the semi-annual principal andinterest payment scheduled for June 30, 2005 related to the SeniorSecured Notes. Investing activities for the three months ended March31, 2004 reflect the use of funds for the acquisition of the Steamboat2/3 project for a total of $74.4 million, a deposit payment of $2.4million for the use of the Meyberg property and a net increase inrestricted cash of $57.2 million originated from the proceeds from theissuance of the Senior Secured Notes in February 2004, that wereearmarked for capital expenditure and debt service reserve accountestablished pursuant to the terms of our Senior Secured Notes.

Net cash used in financing activities for the three months endedMarch 31, 2005 was $2.4  million as compared with net cashprovided by financing activities for the three months ended March 31,2004 of $129.4 million. The principal element of the cash flow fromfinancing activities for the three months ended March 31, 2005 was thenet $2.3 million repayment of the long-term subordinated loan fromOrmat Nevada compared to net proceeds of $51.1 million for the threemonths ended March 31, 2004. The cash flow from financing activities inthe three months ended March 31, 2004 also includes the issuance of theSenior Secured Notes amounting to $190 million, less debt issuancecosts of $8.9 million.

Capital Expenditures

Our capitalexpenditures primarily relate to the enhancement of existing powerplants and the construction of new power plants.

MammothProject.    Mammoth-Pacific, L.P. is planning an $8.3 millionenhancement program ($4.15  million to be funded by us) of theMammoth project, consisting primarily of drilling activities, which webelieve will result in an increase in the output of the project by 4 MWand is expected to be completed in 2006. A substantial portion of thefunds required for such enhancement have been earmarked from theproject's fund by us and our partners for such enhancementprogram.

Ormesa Project.    In connection with theOrmesa project, we have drilled two additional wells, plan to addadditional Ormat Energy Converter ("OEC")units and replace existing units in order to increase the output of theproject by an estimated 10 MW. We estimate that the costs of suchenhancements shall be up to $27 million and will be funded by us frominternally generated cash or other available corporate resources. As ofMarch 31, 2005, approximately $3.3 million in costs had been incurredrelated to the Ormesa project. On May 6, 2005, we completednegotiations for a new 25-year power purchase agreement with SCPPA forthe purchase of 10MW of energy for a fixed price $57.50/MWh, which willescalate annually at a rate of 1.5%. Delivery of energy underthis power purchase agreement is expected to begin in the fourthquarter of 2006.

Galena Project.    We commencedconstruction of the Galena project during the third quarter of 2004,started site construction in the first quarter of 2005 and expect thatthe construction will be complete and that the Galena project willachieve commercial operations in the fourth quarter of 2005.Construction costs of $25.8 million are being funded from the proceedsof the offering of the Senior Secured Notes, $19 million of which arecurrently deposited in an escrow account, and will be released inaccordance with the progress of the construction phase for suchenhancement. Additional costs of construction in the amount of $2million will be funded out of available cash flow. As of March 31,2005, approximately $13.4 million in costs had been incurred related tothe Galena project. Based on the final design of the project, we planto increase the entire steamboat complex's output by a totalincrease of 13 MW.

We do not anticipate any other materialcapital expenditures in the near term, other than ordinary maintenancerequirements.

21

----

Exposure to Market Risks

Onemarket risk to which power plants are typically exposed is thevolatility of electricity prices. We do not have significant exposureto such market risk principally because our long-term power purchaseagreements have fixed or escalating rate provisions that limit our riskof exposure to changes in electricity prices. However, beginning in May2007, the energy payments under the Ormesa and Mammoth project powerpurchase agreements will be determined by reference to thepurchaser's short-run avoided costs. The energy prices ofSteamboat 1/1A are also dependent on Sierra Pacific PowerCompany's short-run avoided costs. We estimate that energypayments will represent approximately two-thirds of thoseprojects' revenues after 2007 and there may be some volatility intheir revenues as a result.

We anticipate that the majority ofour long-term financing will be in the form of fixed rate securities,such as the Senior Secured Notes, and therefore we will not be exposedto changes in interest rates.

Off-Balance SheetArrangements

On June 30, 2004, Ormat Nevada entered into aLetter of Credit Agreement with Hudson United Bank pursuant to whichHudson United Bank agreed to issue one or more letters of credit in theaggregate amount of $15 million, and expiring on June 30, 2007, whichshall be extended for successive one-year periods unless notice isprovided by either Ormat Nevada or the bank not to extend suchexpiration date. At each of March 31, 2005 and December 31, 2004,letters of credit amounting to $10.8 million were issued andoutstanding under this agreement, which has been used to replace cashon deposit as reserve funds that were held as a pledge against theSenior Secured Notes.

Concentration of Credit Risk

Ourcredit risk is currently concentrated with two major customers, SierraPacific Power Company and Southern California Edison Company.

Southern California Edison Company accounted for 42% of ourrevenues for the three months ended March 31, 2005 compared to52% of our revenues for the three months ended March 31, 2004.Southern California Edison Company is also the sole purchase agreementcounterparty and revenue source for the Mammoth project. Based onpublicly available information, Southern California EdisonCompany's issuer rating is BBB+ (stable outlook) by S&P andBaa1 (stable outlook) by Moody's**.**

Sierra PacificPower Company accounted for 58% of our revenues for the threemonths ended March 31, 2005 compared to 48% of our revenues forthe three months ended March 31, 2004. Based on publicly availableinformation, Sierra Pacific Power Company's issuer rating is B+(negative outlook) by S&P and B1 (stable outlook) byMoody's.

If Sierra Pacific Power Company or SouthernCalifornia Edison Company fail to make payments under their powerpurchase agreements with us, this would have a material adverse impacton our financial condition and results of operations.

RiskFactors

A comprehensive discussion of our risk factors isincluded in the "Management's Discussion andAnalysis of Financial Condition and Results of Operations"section of our annual report on Form 10-K for the year ended December31, 2004.

22

----

ITEM 3.    QUANTITATIVE ANDQUALITATIVE DISCLOSURES ABOUT MARKET RISK

Informationresponding to Part I, Item 3 is included in Part I, Item 2 of this Form10-Q, "Management's Discussion and Analysis ofFinancial Condition and Results of Operations," under theheading "Exposure to Market Risk".

ITEM 4.    CONTROLS AND PROCEDURES

a.    Evaluation ofdisclosure controls and procedures

Our management, with theparticipation of our Chief Executive Officer and Chief FinancialOfficer, evaluated the effectiveness of our disclosure controls andprocedures pursuant to Rule 13a-15 under the Securities and ExchangeAct of 1934, as amended, as of the end of the period covered by thisquarterly report. The evaluation included certain control areas inwhich we have made, and are continuing to make, changes to improve andenhance controls. Based on that evaluation as of March 31, 2005, ourPresident and Chief Financial Officer have concluded that ourdisclosure controls and procedures (as defined in Rules 13a-15(e) and15d-15(e) under the Securities Exchange Act of 1934, as amended) wereeffective to ensure that the information required to be disclosed by usin this quarterly report on Form 10-Q was recorded, processed,summarized and reported accurately and within the time periodsspecified within the SEC's rules and instructions for Form 10-QIn designing and evaluating the disclosure controls and procedures,management recognized that any controls and procedures, no matter howwell designed and operated, can provide only reasonable assurance ofachieving the desired control objectives, and management is required toapply its judgment in evaluating the cost benefit relationship ofpossible controls and procedures.

b.    Changes in internalcontrols over financial reporting

There were no changes in ourinternal controls over financial reporting in the first quarter of 2005that have materially affected or are reasonably likely to materiallyaffect our internal controls over financial reporting.

We arefurther enhancing our documentation and analyzing our system ofinternal controls. We have initially identified areas of our internalcontrols requiring improvement, and are in the process of designingenhanced processes and controls to address issues identified throughthis review. Areas of improvement include enhancing and streamliningour financial reporting procedures. We plan to continue thisinitiative, as well as prepare for our first management report oninternal control over financial reporting, as required by Section 404of the Sarbanes-Oxley Act of 2002, on December 31,2005.

23

----

PART II

OTHER INFORMATION

ITEM 1.    LEGALPROCEEDINGS

There were no material developments in any legalproceedings to which we are a party during the first quarter of fiscalyear 2005 from those previously reported in Part I, Item 3 of ourannual report on Form 10-K for the year ended December 31, 2004.

From time to time, we (and our subsidiaries) are a party to variousother lawsuits, claims and other legal and regulatory proceedings thatarise in the ordinary course of our (and their) business. These actionstypically seek, among other things, compensation for alleged personalinjury, breach of contract, property damage, punitive damages, civilpenalties or other losses, or injunctive or declaratory relief. Withrespect to such lawsuits, claims and proceedings, we accrue reserves inaccordance with U.S. generally accepted accounting principles. We donot believe that any of these proceedings, individually or in theaggregate, would materially and adversely affect our business,financial condition, future results and cash flow.

ITEM2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS

None.

ITEM 3.    DEFAULTS UPONSENIOR SECURITIES

None.

ITEM 4.    SUBMISSION OFMATTERS TO A VOTE OF SECURITY HOLDERS

There were no matterssubmitted to a vote of security holders during the first quarter offiscal year 2005.

ITEM 5.    OTHER INFORMATION

None.

ITEM6.    EXHIBITS

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |  |  |  |
|---------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.1           |  | Certificateof Incorporation of Ormat Funding Corp., incorporated by reference toExhibit 3.1 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                                                                                   |
| 3.2           |  | Bylaws of OrmatFunding Corp., incorporated by reference to Exhibit 3.2 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                                                                         |
| 4.1           |  | Indenture, dated as of February13, 2004, among Ormat Funding Corp., Brady Power Partners, SteamboatDevelopment Corp., Steamboat Geothermal LLC, OrMammoth Inc., ORNI 1LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, and Union Bank of California,N.A., incorporated by reference to Exhibit 10.1.7 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004. |
| 4.2           |  | Form of Exchange Note (included inExhibit 4.1).                                                                                                                                                                                                                                                                                                                                                                                             |
|               |

24

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |  |  |  |
|---------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.3           |  | First SupplementalIndenture, dated as of May 14, 2004, among Ormat Funding Corp., BradyPower Partners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit10.1.8 to Ormat Technologies, Inc. Registration Statement on AmendmentNo. 1 to Form S-1 (File No. 333-117527) to the Securities and ExchangeCommission on September 28, 2004. |
| 4.4           |  | SecondSupplemental Indenture, dated as of December 21, 2004, among OrmatFunding Corp., Brady Power Partners, Steamboat Development Corp.,Steamboat Geothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI7 LLC, Ormesa LLC, and Union Bank of California, N.A., incorporated byreference to Exhibit 4.4 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23,2004.                        |
| 4.5           |  | Guarantee, dated as of February13, 2004, by ORNI 1 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.5 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                           |
| 4.6           |  | Guarantee, dated as of February13, 2004, by ORNI 2 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.6 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                           |
| 4.7           |  | Guarantee, dated as of February13, 2004, by ORNI 7 LLC in favor of Union Bank of California, N.A.incorporated by reference to Exhibit 4.7 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                            |
| 4.8           |  | Guarantee, dated as of February13, 2004, by Steamboat Geothermal LLC in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.8 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                             |
| 4.9           |  | Guarantee, dated as of February13, 2004, by Steamboat Development Corp. in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.9 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                          |
| 4.10          |  | Guarantee, dated as of February13, 2004, by Brady Power Partners in favor of Union Bank of California,N.A., incorporated by reference to Exhibit 4.10 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                |
| 4.11          |  | Guarantee, dated as of February13, 2004, by OrMammoth Inc. in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.11 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                      |
| 4.12          |  | Deposit and DisbursementAgreement, dated as of February 13, 2004, among Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Union Bankof California, N.A., incorporated by reference to Exhibit 4.12 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                             |
|               |

25

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.13          |  | Collateral AgencyAgreement, dated as of February 13, 2004, among Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC,and Union Bank of California, N.A., incorporated by reference toExhibit 4.13 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005. |
| 4.14          |  | Registration Rights Agreement,dated as of February 13, 2004, by and among Ormat Funding Corp, BradyPower Partners, Steamboat Geothermal LLC, Steamboat Development Corp,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Lehman BrothersInc., incorporated by reference to Exhibit 4.14 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                              |
| 4.15          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Nevada Inc. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.5 to Ormat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                   |
| 4.16          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Funding Corp. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.16 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                |
| 4.17          |  | First Amendment to Pledge andSecurity Agreement, dated as of October 12, 2004, by and between OrmatFunding Corp. and Union Bank of California, N.A., incorporated byreference to Exhibit 4.17 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                              |
| 4.18          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenBrady Power Partners and Union Bank of California, N.A., incorporatedby reference to Exhibit 4.18 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                                                |
| 4.19          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Steamboat Geothermal LLCand Union Bank of California, N.A., incorporated by reference toExhibit 4.19 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                           |
| 4.20          |  | Pledge and SecurityAgreement, dated as of February 13, 2004, by and between SteamboatDevelopment Corp. and Union Bank of California, N.A., incorporated byreference to Exhibit 4.20 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                                        |
| 4.21          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenORNI 1 LLC and Union Bank of California, N.A., incorporated byreference to Exhibit 4.21 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                                                         |
| 4.22          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenORNI 2 LLC and Union Bank of California, N.A., incorporated byreference to Exhibit 4.22 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                                                         |
| 4.23          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenORNI 7 LLC and Union Bank of California, N.A., incorporated byreference to Exhibit 4.23 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                                                         |
|               |

26

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |  |  |  |
|---------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.24          |  | Third SupplementalIndenture, dated as of December 31, 2004, among Ormesa LLC, OrmatFunding Corp., Brady Power Partners, Steamboat Development Corp.,Steamboat Geothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI7 LLC, and Union Bank of California, N.A., incorporated by reference toExhibit 4.24 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005. |
| 4.25          |  | Guarantee, dated as of December31, 2004, by Ormesa LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                                                                                                   |
| 4.26          |  | Pledge and Security Agreement,dated as of December 31, 2004, by and between Ormesa LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.26 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005.                                                                                                                                           |
| 10.1          |  | FinancingAgreements                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.1.1        |  | Letter of Credit and LoanAgreement, dated as of June 30, 2004, by and between Ormat Nevada, Inc.and Hudson United Bank, incorporated by reference to Exhibit 10.1.16 toOrmat Technologies, Inc. Registration Statement on Amendment No. 2 toForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on October 22, 2004.                                                                                                                                  |
| 10.1.2        |  | FirstAmendment to Letter of Credit and Loan Agreement, dated as of June 30,2004, by and between Ormat Nevada, Inc. and Hudson United Bank,incorporated by reference to Exhibit 10.1.17 to Ormat Technologies,Inc. Registration Statement on Amendment No. 2 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on October 22,2004.                                                                                                                |
| 10.2          |  | PurchaseAgreements                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2.1        |  | Purchase Agreement, datedas of July 15, 2004, by and between Ormat Industries Ltd. and OrmatSystems Ltd., incorporated by reference to Exhibit 10.2.2 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                                                                       |
| 10.3          |  | Power PurchaseAgreements                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3.1        |  | Power Purchase Contract,dated as of July 18, 1984, between Southern California Edison Companyand Republic Geothermal, Inc., incorporated by reference to Exhibit10.3.1 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                                                                                                                                     |
| 10.3.2        |  | Amendment No. 1, to thePower Purchase Contract, dated as of December 23, 1988, betweenSouthern California Edison Company and Ormesa Geothermal, incorporatedby reference to Exhibit 10.3.2 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                                                                                                                  |
| 10.3.3        |  | Power Purchase Contract, datedas of June 13, 1984, between Southern California Edison Company andOrmat Systems, Inc., incorporated by reference to Exhibit 10.3.3 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                                                           |
| 10.3.4        |  | Power Purchase Contract, datedas of April 15, 1985, by and between Mammoth-Pacific LP and SouthernCalifornia Edison Company, incorporated by reference to Exhibit 10.3.13to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                                                   |
| 10.3.5        |  | Amendment No. 1 to PowerPurchase Contract, dated as of October 27, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.14 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                                                                                                                               |
|               |

27

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                             |
| 10.3.6        |  | Amendment No. 2 toPower Purchase Contract, dated as of December 20, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.15 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                            |
| 10.3.7        |  | Amended and Restated PowerPurchase and Sales Agreement, dated as of December 2, 1986, by andbetween Mammoth-Pacific LP and Southern California Edison Company,incorporated by reference to Exhibit 10.3.11 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                |
| 10.3.8        |  | Amendment No. 1, to Amended andRestated Power Purchase and Sale Agreement, dated as of May 18, 1990,by and between Mammoth-Pacific LP and Southern California EdisonCompany, incorporated by reference to Exhibit 10.3.12 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004. |
| 10.3.9        |  | Power Purchase Contract, datedas of April 16, 1985, by and between Southern California Edison Companyand Santa Fe Geothermal, Inc., incorporated by reference to Exhibit10.3.16 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                          |
| 10.3.10       |  | Amendment No. 1 to PowerPurchase Contract, dated as of October 25, 1985, by and betweenSouthern California Edison Company and Mammoth-Pacific LP, incorporatedby reference to Exhibit 10.3.17 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                             |
| 10.3.11       |  | Amendment No. 2 to PowerPurchase Contract, dated as of December 20, 1989, by and betweenSouthern California Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.18 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.               |
| 10.3.12       |  | Interconnection FacilitiesAgreement, dated as of October 20, 1989, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP, incorporated byreference to Exhibit 10.3.19 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                   |
| 10.3.13       |  | Interconnection FacilitiesAgreement, dated as of October 13, 1985, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP (II), incorporated byreference to Exhibit 10.3.20 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                              |
| 10.3.14       |  | Plant Connection Agreement forthe Ormesa Geothermal Plant, dated as of October 1, 1985, by andbetween Imperial Irrigation District and Ormesa Geothermal,incorporated by reference to Exhibit 10.3.26 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                     |
| 10.3.15       |  | Plant Connection Agreement forthe Ormesa IE Geothermal Plant, dated as of October 21, 1988, by andbetween Imperial Irrigation District and Ormesa IE, incorporated byreference to Exhibit 10.3.27 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                         |
| 10.3.16       |  | Plant Connection Agreement forthe Ormesa IH Geothermal Plant, dated as of October 3, 1989, by andbetween Imperial Irrigation District and Ormesa IH, incorporated byreference to Exhibit 10.3.28 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21, 2004.                         |
|               |

28

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                         |
| 10.3.17       |  | Transmission ServiceAgreement for the Ormesa I, Ormesa IE and Ormesa IH Geothermal PowerPlants, dated October 3, 1989, by and between Imperial IrrigationDistrict and Ormesa Geothermal, incorporated by reference to Exhibit10.3.31 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004. |
| 10.3.18       |  | Energy Services Agreement,dated as of February 2003, by and between Imperial Irrigation Districtand Ormesa, LLC, incorporated by reference to Exhibit 10.3.43 to OrmatTechnologies, Inc. Registration Statement on Amendment No. 1 Form S-1(File No. 333-117527) to the Securities and Exchange Commission onSeptember 28, 2004.                                                    |
| 10.3.19       |  | Agreement forthe Purchase and Sale of Electricity, dated as of November 18, 1983, byand between Geothermal Development Associates and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.19 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.         |
| 10.3.20       |  | Amendment to Agreement for thePurchase and Sale of Electricity, dated as of March 6, 1987, by andbetween Geothermal Development Associates and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.20 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.               |
| 10.3.21       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of October 29, 1988, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.21 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                          |
| 10.3.22       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 24, 1991, by andbetween Far West Capital, Inc. and Sierra Pacific Power Company,incorporated by reference to Exhibit 10.3.22 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                          |
| 10.3.23       |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1991, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.23 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.24       |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1992, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.24 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.25       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 18, 1991, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.           |
| 10.3.26       |  | Interconnection FacilitiesAgreement, dated as of October 20, 1989, by and between SouthernCalifornia Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.21 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                                  |
|               |

29

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.3.27       |  | Plant OperatingServices Agreement, dated as of January 1, 1995, by and betweenMammoth-Pacific LP and Pacific Power Plant Operations, incorporated byreference to Exhibit 10.3.27 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                          |
| 10.3.28       |  | Assignment Agreement, dated asof December 18, 2003, by and between Covanta Power Plant Operations andOrmat Nevada, Inc., incorporated by reference to Exhibit 10.3.28 toOrmat Funding Corp. Registration Statement Amendment No. 1 on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                                                                                                                      |
| 10.3.29       |  | IID - EdisonTransmission Service Agreement for Alternative Resources, dated,September 26, 1985, by and between Imperial Irrigation District andSouthern California Edison Company, incorporated by reference toExhibit 10.3.34 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.                                                                           |
| 10.3.30       |  | Long-Term Firm Power PurchaseAgreement, dated June 28, 2004, between ORNI 7 and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.30 Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                                                                     |
| 10.3.31       |  | Long Term Agreement for thePurchase and Sale of Electricity, dated as of October 5, 1990, by andbetween Nevada Geothermal Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.31 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                    |
| 10.3.32       |  | Amendment No. 1 to Long TermAgreement for the Purchase and Sale of Electricity, dated July 12,1991, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.32 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                      |
| 10.3.33       |  | Amendment No. 2 to Long TermAgreement for the Purchase and Sale of Electricity, dated as of June24, 2002, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.33 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                |
| 10.4          |  | Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.4.1        |  | OrmesaBLM Geothermal Resources Lease CA 966, incorporated by reference toExhibit 10.4.1 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.†                                                                                                                                                                                                          |
| 10.4.2        |  | Ormesa BLM License forElectric Power Plant Site CA 24678, incorporated by reference toExhibit 10.4.2 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.††                                                                                                                                                                                     |
| 10.4.3        |  | GeothermalResources Lease, dated as of November 18, 1983, by and between SierraPacific Power Company, as Lessor, and Geothermal DevelopmentAssociates, as Lessee, and amended by the amendments dated January 7,1985, October 29, 1988, and October 2, 1989, incorporated by referenceto Exhibit 10.4.6 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.* |
| 10.4.4        |  | Unprotected Lease Agreement,dated as of July 15, 2004, by and between Ormat Industries Ltd. andOrmat Systems Ltd., incorporated by reference to Exhibit 10.4.25 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                                          |
|               |

30

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4.5        |  | Geothermal ResourcesLease, dated as of June 27, 1988, by and between Bernice Guisti, JudithHarvey and Karen Thompson, Trustees and Beneficiaries of the GuistiTrust as Lessor and Far West Capital Inc. as Lessee, incorporated byreference to Exhibit 10.4.26 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 1 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on September 28,2004.*                                                                    |
| 10.4.6        |  | Amendment to GeothermalResources Lease, dated January, 1992, by and between Bernice Guisti,Judith Harvey and Karen Thompson, Trustees and Beneficiaries of theGuisti Trust, as Lessor and Far West Capital, Inc., as Lessee,incorporated by reference to Exhibit 10.4.27 to Ormat Technologies,Inc. Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.*                                                          |
| 10.4.7        |  | Second Amendment to GeothermalResources Lease, dated as of June 25, 1993, by and between BerniceGuisti, Judith Harvey and Karen Thompson, Trustees and Beneficiaries ofthe Guisti Trust, as Lessor and Far West Capital, Inc. and itsAssignee, Steamboat Development Corp., as Lessee, incorporated byreference to Exhibit 10.4.28 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 1 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on September 28,2004. |
| 10.4.8        |  | Geothermal Resources Sublease,dated as of May 31, 1991, by and between Fleetwood Corporation, asLessor, and Far West Capital, Inc., incorporated by reference toExhibit 10.4.29 to Ormat Technologies, Inc. Registration Statement onAmendment No. 1 to Form S-1 (File No. 333-117527) to the Securities andExchange Commission on September 28,2004.*                                                                                                                                                   |
| 10.4.9        |  | Geothermal Resources Lease,dated as of May 31, 1991, by and between Dorothy A. Towne, the Trust ofDorothy A. Towne and Fleetwood Corporation, incorporated by referenceto Exhibit 10.4.9 to Ormat Funding Corp. Registration StatementAmendment No. 1 on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on February 7,2005.                                                                                                                                                     |
| 10.4.10       |  | Mammoth Geothermal Lease,dated as of August 31, 1983, by and between Magma Energy, Inc. and HoltGeothermal Company, incorporated by reference to Exhibit 10.4.10 toOrmat Funding Corp. Registration Statement Amendment No. 1 on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                                                                                                                                                                             |
| 10.4.11       |  | First Amendment toMammoth Geothermal Lease, dated as of April 30, 1987, by and betweenMagma Energy, Inc. and Holt Geothermal Company, incorporated byreference to Exhibit 10.4.11 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005.                                                                                                                                                            |
| 10.4.12       |  | Second Amendment to MammothGeothermal Lease, dated as of January 1, 1990, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.12 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                                                                                                                                          |
| 10.4.13       |  | Third Amendment to MammothGeothermal Lease, dated as of April 12, 1991, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.13 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7, 2005.                                                                                                                                                           |
|               |

31

----

|               |  |                                                                                                                                                                                                                                                                                                                                                               |  |  |  |  |
|---------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                   |
| 10.4.14       |  | Grant of EasementAgreement, dated as of March 27, 1998, by David. P. Frase, Timothy D.Frase and James W. Roberts in favor of Brady Power Partners,incorporated by reference to Exhibit 10.4.14 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.    |
| 10.4.15       |  | Sublease, dated as of January14, 2004, by and between Western States Geothermal Company and BradyPower Partners, incorporated by reference to Exhibit 10.4.15 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005.                                     |
| 10.5          |  | Operation and MaintenanceAgreements                                                                                                                                                                                                                                                                                                                           |
| 10.5.1        |  | Amended and RestatedOperation and Maintenance Agreement, dated as of December 8, 2003, byand among ORNI 7 LLC, Steamboat Geothermal LLC, and Ormat Nevada Inc.,incorporated by reference to Exhibit 10.5.1 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.       |
| 10.5.2        |  | Operation and MaintenanceAgreement, dated as of April 15, 2002, by and between Ormesa LLC andOrmat Nevada, Inc., incorporated by reference to Exhibit 10.5.2 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                     |
| 10.5.3        |  | Operation and MaintenanceAgreement, dated as of January 1, 2002, by and between Brady PowerPartners and Ormat Nevada, Inc., incorporated by reference to Exhibit10.5.3 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                          |
| 10.5.4        |  | First Amendment to BradyOperation and Maintenance Agreement, dated as of February 13, 2004, byand between Brady Power Partners and Ormat Nevada, Inc., incorporatedby reference to Exhibit 10.5.4 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005. |
| 10.6          |  | InterconnectionAgreements                                                                                                                                                                                                                                                                                                                                     |
| 10.6.1        |  | Special FacilitiesAgreement, dated as of October 29, 1988, by and between Sierra PacificPower Company and Far West Capital, Inc., incorporated by reference toExhibit 10.6.1 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                      |
| 10.6.2        |  | Special Facilities Agreement,dated as of April 24, 1992, by and between Sierra Pacific Power Companyand Far West Capital, Inc., incorporated by reference to Exhibit 10.6.2to Ormat Funding Corp. Registration Statement Amendment No. 1 on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                       |
| 10.7          |  | Location andOccupancy Agreements                                                                                                                                                                                                                                                                                                                              |
| 10.7.1        |  | FacilityLocation and Occupancy Agreement, dated as of December 31, 1985, by andbetween Sierra Pacific Power Company and Far West Hydroelectric Fund,Ltd., incorporated by reference to Exhibit 10.7.1 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.            |
| 10.8          |  | AcquisitionAgreements                                                                                                                                                                                                                                                                                                                                         |
| 10.8.1        |  | Interest PurchaseAgreement, dated as of June 30, 2003, and among ORNI 7 LLC, U.S. EnergySystems, Inc., and Ormat Nevada, Inc., incorporated by reference toExhibit 10.8.1 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                       |
|               |

32

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |  |  |  |
|---------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.8.2        |  | Interest PurchaseAgreement, dated June 30, 2003, by and among ORNI 7 LLC, Far WestCapital, Inc., and 1-A Enterprises, incorporated by reference toExhibit 10.8.2 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                                        |
| 10.8.3        |  | Sale and PurchaseAgreement, dated November 19, 2003, by and among Far West Capital,Inc., FW Consulting Services, L.C., Geo Energy, LLC, SB Geo, Inc., andORNI 7, incorporated by reference to Exhibit 10.8.3 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                              |
| 10.8.4        |  | Purchase and Sale Agreement,dated as of June 1, 2004, by and between The Burlington Northern andSanta Fe Railway Company and Brady Power Partners, incorporated byreference to Exhibit 10.8.4 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                            |
| 10.8.5        |  | Sale and Purchase Agreement,dated February 28, 2001, by and among ESI BH Limited Partnership, TPCBrady, Inc., ORNI 1 LLC, and ORNI 2 LLC, incorporated by reference toExhibit 10.8.5 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                    |
| 10.8.6        |  | Sale and PurchaseAgreement, dated April 4, 2002, by and among CH Ormesa, Inc., CH OrmesaLP, Inc., ORNI 8 LLC, and Ormat Funding Corp., incorporated byreference to Exhibit 10.8.6 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                                        |
| 10.8.7        |  | Sale and Purchase Agreement,dated January 31, 2002, by and among CD Ormesageo II-A, Inc., CDOrmesageo II-B, Inc., CD Ormesageo II-C, Inc., Bell Atlantic TriConLeasing Corporation, Constellation Power, Inc. and Verizon CapitalCorp., ORNI 8 LLC, and Ormat Funding Corp., incorporated by referenceto Exhibit 10.8.7 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004. |
| 10.8.8        |  | Sale and PurchaseAgreement, dated April 4, 2002, by and among the Selling Entities andORNI 7 LLC, ORNI 8 LLC, and Ormat Funding Corp., incorporated byreference to Exhibit 10.8.8 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                                        |
| 10.9          |  | Engineering, Procurement, andConstruction Contracts                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.9.1        |  | Engineering,Procurement, and Construction Contract, dated as of August 2, 2004, byand between ORNI 7 LLC and Ormat Nevada Inc., incorporated by referenceto Exhibit 10.9.1 to Ormat Funding Corp. Registration StatementAmendment No. 1 on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on February 7,2005.                                                                                                                                |
| 10.9.2        |  | Change in Work Order, dated asof August 9, 2004, for Engineering, Procurement, and ConstructionContract by and between ORNI 7 LLC and Ormat Nevada Inc., incorporatedby reference to Exhibit 10.9.2 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005.                                                                                                       |
| 10.9.3        |  | Engineering, Procurement, andConstruction Agreement Guaranty, dated as of August 2, 2004, by OrmatTechnologies Inc. in favor of ORNI 7 LLC, incorporated by reference toExhibit 10.9.3 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23,2004.                                                                                                                                   |
| 10.10         |  | General                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.10.1       |  | Amendedand Restated Agreement of Limited Partnership of Mammoth-Pacific LP,dated as of January 26, 1990, incorporated by reference to Exhibit10.10.1 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                                    |
|               |

33

----

|               |  |                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                  |
| 10.10.2       |  | Amendment No. 1 toAmend ed and Restated Agreement of Limited Partnership ofMammoth-Pacific LP. dated as of January 26, 1990, incorporated byreference to Exhibit 10.10.2 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                        |
| 10.10.3       |  | Authorization, Direction andTermination Agreement, dated as of October 16, 2004, by and among BNYWestern Trust Company, SRT, Inc., and Steamboat Development Corp.,incorporated by reference to Exhibit 10.10.3 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004. |
| 31.1          |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 31.2          |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.1          |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.2          |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 99.1          |  | Material terms with respectto BLM geothermal resources leases, incorporated by reference toExhibit 99.1 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                        |
| 99.2          |  | Material terms withrespect to BLM site leases, incorporated by reference to Exhibit 99.2to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                       |
| 99.3          |  | Material terms with respect toagreements addressing renewable energy pricing and payment issues,incorporated by reference to Exhibit 99.3 to Ormat Technologies, Inc.Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.                                              |
|               |

* Portions of this exhibit have beenomitted and filed separately under an application for confidentialtreatment which was granted by the Securities and Exchange Commissionon January 24, 2005 in connection with Ormat Funding Corp. RegulationStatements on Form S-4 (File No. 333-121655).

† Wehave entered into other BLM geothermal resources leases that aresubstantially similar in terms with this exhibit. Any deviation interms with this exhibit have been described in Exhibit 99.1.

†† We have entered into other BLM site leasesthat are substantially similar in terms with this exhibit. Anydeviation in terms with this exhibit have been described in Exhibit99.2.

34

----

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,the registrant has duly caused this report to be signed on its behalfby the undersigned thereunto duly authorized.

|                   |  |                     |  |                                                                        |  |  |  |  |  |  |
|-------------------|--|---------------------|--|------------------------------------------------------------------------|--|--|--|--|--|--|
|              |  | ORMAT FUNDING CORP. |
| Date: May 12,2005 |  | By:                 |  | /s/ CONNIE STECHMAN Name: ConnieStechman Title: Chief FinancialOfficer |
|                   |

35

----

EXHIBITINDEX

|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |  |  |  |
|---------------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.1                 |  | Certificateof Incorporation of Ormat Funding Corp., incorporated by reference toExhibit 3.1 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                                                                                                                         |
| 3.2                 |  | Bylaws of OrmatFunding Corp., incorporated by reference to Exhibit 3.2 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                                                                                                               |
| 4.1                 |  | Indenture, dated as of February13, 2004, among Ormat Funding Corp., Brady Power Partners, SteamboatDevelopment Corp., Steamboat Geothermal LLC, OrMammoth Inc., ORNI 1LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, and Union Bank of California,N.A., incorporated by reference to Exhibit 10.1.7 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                       |
| 4.2                 |  | Form of Exchange Note (included inExhibit 4.1).                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.3                 |  | First SupplementalIndenture, dated as of May 14, 2004, among Ormat Funding Corp., BradyPower Partners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit10.1.8 to Ormat Technologies, Inc. Registration Statement on AmendmentNo. 1 to Form S-1 (File No. 333-117527) to the Securities and ExchangeCommission on September 28, 2004. |
| 4.4                 |  | SecondSupplemental Indenture, dated as of December 21, 2004, among OrmatFunding Corp., Brady Power Partners, Steamboat Development Corp.,Steamboat Geothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI7 LLC, Ormesa LLC, and Union Bank of California, N.A., incorporated byreference to Exhibit 4.4 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23,2004.                        |
| 4.5                 |  | Guarantee, dated as of February13, 2004, by ORNI 1 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.5 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                           |
| 4.6                 |  | Guarantee, dated as of February13, 2004, by ORNI 2 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.6 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                           |
| 4.7                 |  | Guarantee, dated as of February13, 2004, by ORNI 7 LLC in favor of Union Bank of California, N.A.incorporated by reference to Exhibit 4.7 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                            |
| 4.8                 |  | Guarantee, dated as of February13, 2004, by Steamboat Geothermal LLC in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.8 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                             |
|                     |

36

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.9                 |  | Guarantee, dated as ofFebruary 13, 2004, by Steamboat Development Corp. in favor of UnionBank of California, N.A., incorporated by reference to Exhibit 4.9 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                 |
| 4.10                |  | Guarantee, dated as of February13, 2004, by Brady Power Partners in favor of Union Bank of California,N.A., incorporated by reference to Exhibit 4.10 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                       |
| 4.11                |  | Guarantee, dated as of February13, 2004, by OrMammoth Inc. in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.11 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                             |
| 4.12                |  | Deposit and DisbursementAgreement, dated as of February 13, 2004, among Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Union Bankof California, N.A., incorporated by reference to Exhibit 4.12 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                    |
| 4.13                |  | Collateral Agency Agreement,dated as of February 13, 2004, among Ormat Funding Corp., Brady PowerPartners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit4.13 to Ormat Funding Corp. Registration Statement Amendment No. 1 onForm S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005. |
| 4.14                |  | Registration Rights Agreement,dated as of February 13, 2004, by and among Ormat Funding Corp, BradyPower Partners, Steamboat Geothermal LLC, Steamboat Development Corp,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Lehman BrothersInc., incorporated by reference to Exhibit 4.14 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                              |
| 4.15                |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Nevada Inc. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.5 to Ormat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                   |
| 4.16                |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Funding Corp. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.16 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                |
| 4.17                |  | First Amendment to Pledge andSecurity Agreement, dated as of October 12, 2004, by and between OrmatFunding Corp. and Union Bank of California, N.A., incorporated byreference to Exhibit 4.17 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                              |
| 4.18                |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenBrady Power Partners and Union Bank of California, N.A., incorporatedby reference to Exhibit 4.18 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23, 2004.                                                                                                                                               |
|                     |

37

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.19                |  | Pledge and SecurityAgreement, dated as of February 13, 2004, by and between SteamboatGeothermal LLC and Union Bank of California, N.A., incorporated byreference to Exhibit 4.19 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                                             |
| 4.20                |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenSteamboat Development Corp. and Union Bank of California, N.A.,incorporated by reference to Exhibit 4.20 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                           |
| 4.21                |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 1 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.21 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.22                |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 2 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.22 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.23                |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 7 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.23 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.24                |  | Third Supplemental Indenture,dated as of December 31, 2004, among Ormesa LLC, Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Union Bankof California, N.A., incorporated by reference to Exhibit 4.24 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005. |
| 4.25                |  | Guarantee, dated as ofDecember 31, 2004, by Ormesa LLC in favor of Union Bank of California,N.A., incorporated by reference to Exhibit 4.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                                                                                                    |
| 4.26                |  | Pledge and Security Agreement,dated as of December 31, 2004, by and between Ormesa LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.26 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005.                                                                                                                                            |
| 10.1                |  | FinancingAgreements                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1.1              |  | Letter of Credit and LoanAgreement, dated as of June 30, 2004, by and between Ormat Nevada, Inc.and Hudson United Bank, incorporated by reference to Exhibit 10.1.16 toOrmat Technologies, Inc. Registration Statement on Amendment No. 2 toForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on October 22, 2004.                                                                                                                                   |
| 10.1.2              |  | FirstAmendment to Letter of Credit and Loan Agreement, dated as of June 30,2004, by and between Ormat Nevada, Inc. and Hudson United Bank,incorporated by reference to Exhibit 10.1.17 to Ormat Technologies,Inc. Registration Statement on Amendment No. 2 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on October 22,2004.                                                                                                                 |
| 10.2                |  | PurchaseAgreements                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                     |

38

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                             |
| 10.2.1              |  | Purchase Agreement,dated as of July 15, 2004, by and between Ormat Industries Ltd. andOrmat Systems Ltd., incorporated by reference to Exhibit 10.2.2 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                     |
| 10.3                |  | Power PurchaseAgreements                                                                                                                                                                                                                                                                                                                                                |
| 10.3.1              |  | Power Purchase Contract,dated as of July 18, 1984, between Southern California Edison Companyand Republic Geothermal, Inc., incorporated by reference to Exhibit10.3.1 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                                   |
| 10.3.2              |  | Amendment No. 1, to thePower Purchase Contract, dated as of December 23, 1988, betweenSouthern California Edison Company and Ormesa Geothermal, incorporatedby reference to Exhibit 10.3.2 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                |
| 10.3.3              |  | Power Purchase Contract, datedas of June 13, 1984, between Southern California Edison Company andOrmat Systems, Inc., incorporated by reference to Exhibit 10.3.3 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                         |
| 10.3.4              |  | Power Purchase Contract, datedas of April 15, 1985, by and between Mammoth-Pacific LP and SouthernCalifornia Edison Company, incorporated by reference to Exhibit 10.3.13to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                                 |
| 10.3.5              |  | Amendment No. 1 to PowerPurchase Contract, dated as of October 27, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.14 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                             |
| 10.3.6              |  | Amendment No. 2 to PowerPurchase Contract, dated as of December 20, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.15 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                            |
| 10.3.7              |  | Amended and Restated PowerPurchase and Sales Agreement, dated as of December 2, 1986, by andbetween Mammoth-Pacific LP and Southern California Edison Company,incorporated by reference to Exhibit 10.3.11 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                |
| 10.3.8              |  | Amendment No. 1, to Amended andRestated Power Purchase and Sale Agreement, dated as of May 18, 1990,by and between Mammoth-Pacific LP and Southern California EdisonCompany, incorporated by reference to Exhibit 10.3.12 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004. |
| 10.3.9              |  | Power Purchase Contract, datedas of April 16, 1985, by and between Southern California Edison Companyand Santa Fe Geothermal, Inc., incorporated by reference to Exhibit10.3.16 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                          |
|                     |

39

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |  |
|---------------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                         |
| 10.3.10             |  | Amendment No. 1 toPower Purchase Contract, dated as of October 25, 1985, by and betweenSouthern California Edison Company and Mammoth-Pacific LP, incorporatedby reference to Exhibit 10.3.17 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                                         |
| 10.3.11             |  | Amendment No. 2 to PowerPurchase Contract, dated as of December 20, 1989, by and betweenSouthern California Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.18 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                           |
| 10.3.12             |  | Interconnection FacilitiesAgreement, dated as of October 20, 1989, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP, incorporated byreference to Exhibit 10.3.19 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                               |
| 10.3.13             |  | Interconnection FacilitiesAgreement, dated as of October 13, 1985, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP (II), incorporated byreference to Exhibit 10.3.20 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                          |
| 10.3.14             |  | Plant Connection Agreement forthe Ormesa Geothermal Plant, dated as of October 1, 1985, by andbetween Imperial Irrigation District and Ormesa Geothermal,incorporated by reference to Exhibit 10.3.26 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                                 |
| 10.3.15             |  | Plant Connection Agreement forthe Ormesa IE Geothermal Plant, dated as of October 21, 1988, by andbetween Imperial Irrigation District and Ormesa IE, incorporated byreference to Exhibit 10.3.27 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                     |
| 10.3.16             |  | Plant Connection Agreement forthe Ormesa IH Geothermal Plant, dated as of October 3, 1989, by andbetween Imperial Irrigation District and Ormesa IH, incorporated byreference to Exhibit 10.3.28 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                      |
| 10.3.17             |  | Transmission Service Agreementfor the Ormesa I, Ormesa IE and Ormesa IH Geothermal Power Plants,dated October 3, 1989, by and between Imperial Irrigation District andOrmesa Geothermal, incorporated by reference to Exhibit 10.3.31 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004. |
| 10.3.18             |  | Energy Services Agreement,dated as of February 2003, by and between Imperial Irrigation Districtand Ormesa, LLC, incorporated by reference to Exhibit 10.3.43 to OrmatTechnologies, Inc. Registration Statement on Amendment No. 1 Form S-1(File No. 333-117527) to the Securities and Exchange Commission onSeptember 28, 2004.                                                    |
| 10.3.19             |  | Agreement forthe Purchase and Sale of Electricity, dated as of November 18, 1983, byand between Geothermal Development Associates and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.19 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.         |
|                     |

40

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                           |  |  |  |  |
|---------------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                               |
| 10.3.20             |  | Amendment toAgreement for the Purchase and Sale of Electricity, dated as of March6, 1987, by and between Geothermal Development Associates and SierraPacific Power Company, incorporated by reference to Exhibit 10.3.20 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.     |
| 10.3.21             |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of October 29, 1988, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.21 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                |
| 10.3.22             |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 24, 1991, by andbetween Far West Capital, Inc. and Sierra Pacific Power Company,incorporated by reference to Exhibit 10.3.22 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                |
| 10.3.23             |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1991, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.23 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.           |
| 10.3.24             |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1992, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.24 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.           |
| 10.3.25             |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 18, 1991, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005. |
| 10.3.26             |  | Interconnection FacilitiesAgreement, dated as of October 20, 1989, by and between SouthernCalifornia Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.21 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                        |
| 10.3.27             |  | Plant Operating ServicesAgreement, dated as of January 1, 1995, by and between Mammoth-PacificLP and Pacific Power Plant Operations, incorporated by reference toExhibit 10.3.27 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                            |
| 10.3.28             |  | AssignmentAgreement, dated as of December 18, 2003, by and between Covanta PowerPlant Operations and Ormat Nevada, Inc., incorporated by reference toExhibit 10.3.28 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7, 2005.                                         |
|                     |

41

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |  |  |  |
|---------------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.3.29             |  | IID - EdisonTransmission Service Agreement for Alternative Resources, dated,September 26, 1985, by and between Imperial Irrigation District andSouthern California Edison Company, incorporated by reference toExhibit 10.3.34 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.                                                                           |
| 10.3.30             |  | Long-Term Firm Power PurchaseAgreement, dated June 28, 2004, between ORNI 7 and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.30 Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                                                                     |
| 10.3.31             |  | Long Term Agreement for thePurchase and Sale of Electricity, dated as of October 5, 1990, by andbetween Nevada Geothermal Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.31 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                    |
| 10.3.32             |  | Amendment No. 1 to Long TermAgreement for the Purchase and Sale of Electricity, dated July 12,1991, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.32 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                      |
| 10.3.33             |  | Amendment No. 2 to Long TermAgreement for the Purchase and Sale of Electricity, dated as of June24, 2002, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.33 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                |
| 10.4                |  | Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.4.1              |  | OrmesaBLM Geothermal Resources Lease CA 966, incorporated by reference toExhibit 10.4.1 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.†                                                                                                                                                                                                          |
| 10.4.2              |  | Ormesa BLM License forElectric Power Plant Site CA 24678, incorporated by reference toExhibit 10.4.2 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.††                                                                                                                                                                                     |
| 10.4.3              |  | GeothermalResources Lease, dated as of November 18, 1983, by and between SierraPacific Power Company, as Lessor, and Geothermal DevelopmentAssociates, as Lessee, and amended by the amendments dated January 7,1985, October 29, 1988, and October 2, 1989, incorporated by referenceto Exhibit 10.4.6 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.* |
| 10.4.4              |  | Unprotected Lease Agreement,dated as of July 15, 2004, by and between Ormat Industries Ltd. andOrmat Systems Ltd., incorporated by reference to Exhibit 10.4.25 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                                          |
| 10.4.5              |  | Geothermal Resources Lease,dated as of June 27, 1988, by and between Bernice Guisti, Judith Harveyand Karen Thompson, Trustees and Beneficiaries of the Guisti Trust asLessor and Far West Capital Inc. as Lessee, incorporated by referenceto Exhibit 10.4.26 to Ormat Technologies, Inc. Registration Statementon Amendment No. 1 to Form S-1 (File No. 333-117527) to the Securitiesand Exchange Commission on September 28, 2004.*                 |
|                     |

42

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4.6              |  | Amendment toGeothermal Resources Lease, dated January, 1992, by and between BerniceGuisti, Judith Harvey and Karen Thompson, Trustees and Beneficiaries ofthe Guisti Trust, as Lessor and Far West Capital, Inc., as Lessee,incorporated by reference to Exhibit 10.4.27 to Ormat Technologies,Inc. Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.*                                                          |
| 10.4.7              |  | Second Amendment to GeothermalResources Lease, dated as of June 25, 1993, by and between BerniceGuisti, Judith Harvey and Karen Thompson, Trustees and Beneficiaries ofthe Guisti Trust, as Lessor and Far West Capital, Inc. and itsAssignee, Steamboat Development Corp., as Lessee, incorporated byreference to Exhibit 10.4.28 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 1 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on September 28,2004. |
| 10.4.8              |  | Geothermal Resources Sublease,dated as of May 31, 1991, by and between Fleetwood Corporation, asLessor, and Far West Capital, Inc., incorporated by reference toExhibit 10.4.29 to Ormat Technologies, Inc. Registration Statement onAmendment No. 1 to Form S-1 (File No. 333-117527) to the Securities andExchange Commission on September 28,2004.*                                                                                                                                                   |
| 10.4.9              |  | Geothermal Resources Lease,dated as of May 31, 1991, by and between Dorothy A. Towne, the Trust ofDorothy A. Towne and Fleetwood Corporation, incorporated by referenceto Exhibit 10.4.9 to Ormat Funding Corp. Registration StatementAmendment No. 1 on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on February 7,2005.                                                                                                                                                     |
| 10.4.10             |  | Mammoth Geothermal Lease,dated as of August 31, 1983, by and between Magma Energy, Inc. and HoltGeothermal Company, incorporated by reference to Exhibit 10.4.10 toOrmat Funding Corp. Registration Statement Amendment No. 1 on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                                                                                                                                                                             |
| 10.4.11             |  | First Amendment toMammoth Geothermal Lease, dated as of April 30, 1987, by and betweenMagma Energy, Inc. and Holt Geothermal Company, incorporated byreference to Exhibit 10.4.11 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005.                                                                                                                                                            |
| 10.4.12             |  | Second Amendment to MammothGeothermal Lease, dated as of January 1, 1990, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.12 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                                                                                                                                          |
| 10.4.13             |  | Third Amendment to MammothGeothermal Lease, dated as of April 12, 1991, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.13 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                                                                                                                                            |
| 10.4.14             |  | Grant of Easement Agreement,dated as of March 27, 1998, by David. P. Frase, Timothy D. Frase andJames W. Roberts in favor of Brady Power Partners, incorporated byreference to Exhibit 10.4.14 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005.                                                                                                                                               |
|                     |

43

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                               |  |  |  |  |
|---------------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                   |
| 10.4.15             |  | Sublease, dated asof January 14, 2004, by and between Western States Geothermal Companyand Brady Power Partners, incorporated by reference to Exhibit 10.4.15to Ormat Funding Corp. Registration Statement Amendment No. 1 on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                                     |
| 10.5                |  | Operation andMaintenance Agreements                                                                                                                                                                                                                                                                                                                           |
| 10.5.1              |  | Amended andRestated Operation and Maintenance Agreement, dated as of December 8,2003, by and among ORNI 7 LLC, Steamboat Geothermal LLC, and OrmatNevada Inc., incorporated by reference to Exhibit 10.5.1 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.       |
| 10.5.2              |  | Operation and MaintenanceAgreement, dated as of April 15, 2002, by and between Ormesa LLC andOrmat Nevada, Inc., incorporated by reference to Exhibit 10.5.2 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                     |
| 10.5.3              |  | Operation and MaintenanceAgreement, dated as of January 1, 2002, by and between Brady PowerPartners and Ormat Nevada, Inc., incorporated by reference to Exhibit10.5.3 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                          |
| 10.5.4              |  | First Amendment to BradyOperation and Maintenance Agreement, dated as of February 13, 2004, byand between Brady Power Partners and Ormat Nevada, Inc., incorporatedby reference to Exhibit 10.5.4 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005. |
| 10.6                |  | InterconnectionAgreements                                                                                                                                                                                                                                                                                                                                     |
| 10.6.1              |  | Special FacilitiesAgreement, dated as of October 29, 1988, by and between Sierra PacificPower Company and Far West Capital, Inc., incorporated by reference toExhibit 10.6.1 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                      |
| 10.6.2              |  | Special Facilities Agreement,dated as of April 24, 1992, by and between Sierra Pacific Power Companyand Far West Capital, Inc., incorporated by reference to Exhibit 10.6.2to Ormat Funding Corp. Registration Statement Amendment No. 1 on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                       |
| 10.7                |  | Location andOccupancy Agreements                                                                                                                                                                                                                                                                                                                              |
| 10.7.1              |  | FacilityLocation and Occupancy Agreement, dated as of December 31, 1985, by andbetween Sierra Pacific Power Company and Far West Hydroelectric Fund,Ltd., incorporated by reference to Exhibit 10.7.1 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.            |
| 10.8                |  | AcquisitionAgreements                                                                                                                                                                                                                                                                                                                                         |
| 10.8.1              |  | Interest PurchaseAgreement, dated as of June 30, 2003, and among ORNI 7 LLC, U.S. EnergySystems, Inc., and Ormat Nevada, Inc., incorporated by reference toExhibit 10.8.1 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                       |
|                     |

44

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |  |  |  |
|---------------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.8.2              |  | Interest PurchaseAgreement, dated June 30, 2003, by and among ORNI 7 LLC, Far WestCapital, Inc., and 1-A Enterprises, incorporated by reference toExhibit 10.8.2 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                                        |
| 10.8.3              |  | Sale and PurchaseAgreement, dated November 19, 2003, by and among Far West Capital,Inc., FW Consulting Services, L.C., Geo Energy, LLC, SB Geo, Inc., andORNI 7, incorporated by reference to Exhibit 10.8.3 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                              |
| 10.8.4              |  | Purchase and Sale Agreement,dated as of June 1, 2004, by and between The Burlington Northern andSanta Fe Railway Company and Brady Power Partners, incorporated byreference to Exhibit 10.8.4 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                            |
| 10.8.5              |  | Sale and Purchase Agreement,dated February 28, 2001, by and among ESI BH Limited Partnership, TPCBrady, Inc., ORNI 1 LLC, and ORNI 2 LLC, incorporated by reference toExhibit 10.8.5 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                    |
| 10.8.6              |  | Sale and PurchaseAgreement, dated April 4, 2002, by and among CH Ormesa, Inc., CH OrmesaLP, Inc., ORNI 8 LLC, and Ormat Funding Corp., incorporated byreference to Exhibit 10.8.6 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                                        |
| 10.8.7              |  | Sale and Purchase Agreement,dated January 31, 2002, by and among CD Ormesageo II-A, Inc., CDOrmesageo II-B, Inc., CD Ormesageo II-C, Inc., Bell Atlantic TriConLeasing Corporation, Constellation Power, Inc. and Verizon CapitalCorp., ORNI 8 LLC, and Ormat Funding Corp., incorporated by referenceto Exhibit 10.8.7 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004. |
| 10.8.8              |  | Sale and PurchaseAgreement, dated April 4, 2002, by and among the Selling Entities andORNI 7 LLC, ORNI 8 LLC, and Ormat Funding Corp., incorporated byreference to Exhibit 10.8.8 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                                        |
| 10.9                |  | Engineering, Procurement, andConstruction Contracts                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.9.1              |  | Engineering,Procurement, and Construction Contract, dated as of August 2, 2004, byand between ORNI 7 LLC and Ormat Nevada Inc., incorporated by referenceto Exhibit 10.9.1 to Ormat Funding Corp. Registration StatementAmendment No. 1 on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on February 7,2005.                                                                                                                                |
| 10.9.2              |  | Change in Work Order, dated asof August 9, 2004, for Engineering, Procurement, and ConstructionContract by and between ORNI 7 LLC and Ormat Nevada Inc., incorporatedby reference to Exhibit 10.9.2 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005.                                                                                                       |
| 10.9.3              |  | Engineering, Procurement, andConstruction Agreement Guaranty, dated as of August 2, 2004, by OrmatTechnologies Inc. in favor of ORNI 7 LLC, incorporated by reference toExhibit 10.9.3 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                  |
|                     |

45

----

|                     |  |                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|---------------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
|  ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                  |
| 10.10               |  | General                                                                                                                                                                                                                                                                                                                                                      |
| 10.10.1             |  | Amendedand Restated Agreement of Limited Partnership of Mammoth-Pacific LP,dated as of January 26, 1990, incorporated by reference to Exhibit10.10.1 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                           |
| 10.10.2             |  | Amendment No. 1 to Amended and Restated Agreement of Limited Partnership of Mammoth-Pacific LP.dated as of January 26, 1990, incorporated by reference to Exhibit10.10.2 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                       |
| 10.10.3             |  | Authorization, Directionand Termination Agreement, dated as of October 16, 2004, by and amongBNY Western Trust Company, SRT, Inc., and Steamboat Development Corp.,incorporated by reference to Exhibit 10.10.3 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004. |
| 31.1                |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 31.2                |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.1                |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.2                |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 99.1                |  | Material terms with respectto BLM geothermal resources leases, incorporated by reference toExhibit 99.1 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                        |
| 99.2                |  | Material terms withrespect to BLM site leases, incorporated by reference to Exhibit 99.2to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                       |
| 99.3                |  | Material terms with respect toagreements addressing renewable energy pricing and payment issues,incorporated by reference to Exhibit 99.3 to Ormat Technologies, Inc.Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.                                              |
|                     |

* Portions of this exhibit have beenomitted and filed separately under an application for confidentialtreatment which was granted by the Securities and Exchange Commissionon January 24, 2005 in connection with Ormat Funding Corp. RegulationStatements on Form S-4 (File No. 333-121655).

† Wehave entered into other BLM geothermal resources leases that aresubstantially similar in terms with this exhibit. Any deviation interms with this exhibit have been described in Exhibit 99.1.

†† We have entered into other BLM site leasesthat are substantially similar in terms with this exhibit. Anydeviation in terms with this exhibit have been described in Exhibit99.2.

46

----