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SECURITIESAND EXCHANGE COMMISSION

Washington, D.C.20549

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FORM10-Q

(MarkOne)

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

For the quarterly period ended June 30,2005

or

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

For the transition period from                         to                        

Commission filenumber: 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).

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ORMAT FUNDING CORP.

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2005

TABLE OFCONTENTS

|             |  |                                                                                     |  |         |    |        |  |  |  |  |
|-------------|--|-------------------------------------------------------------------------------------|--|---------|----|--------|--|--|--|--|
|        |  |                                                                                |  | PageNo. |
| **PARTI**   |  | **FinancialInformation**                                                            |  |    | 4  |   |
| ITEM 1.     |  | Condensed Consolidated Financial Statements                                         |  |    | 4  |   |
| ITEM 2.     |  | Management'sDiscussion and Analysis of Financial Condition and Results ofOperations |  |    | 14 |   |
| ITEM 3.     |  | Quantitative and Qualitative Disclosures AboutMarket Risk                           |  |    | 26 |   |
| ITEM 4.     |  | Controls andProcedures                                                              |  |    | 26 |   |
| **PART II** |  | **Other Information**                                                               |  |    | 28 |   |
| ITEM1.      |  | Legal Proceedings                                                                   |  |    | 28 |   |
| ITEM2.      |  | Unregistered Sales of Equity Securities and Use ofProceeds                          |  |    | 28 |   |
| ITEM 3.     |  | Defaults uponSenior Securities                                                      |  |    | 28 |   |
| ITEM4.      |  | Submission of Matters to a Vote of SecurityHolders                                  |  |    | 28 |   |
| ITEM 5.     |  | OtherInformation                                                                    |  |    | 28 |   |
| ITEM 6.     |  | Exhibits andReports on Form8-K                                                      |  |    | 28 |   |
|             |

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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," the"Company" and "us"refer to Ormat Funding and its subsidiaries on a consolidated basis;"Ormat Nevada" or"Parent" refers to Ormat Nevada Inc., ourdirect parent company; "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 81⁄4% SeniorSecured Notes due 2020 that were sold in February2004.

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PART I

FINANCIAL INFORMATION

ITEM1.    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

|                                                              |  |                        |         |                  |  |        |         |        |  |  |
|--------------------------------------------------------------|--|------------------------|---------|------------------|--|--------|---------|--------|--|--|
|                                                         |  | June30,2005            |         | December 31,2004 |
|                                                         |  | (dollars in thousands) |
| **Assets**                                                   |  |
| Currentassets:                                               |  |
| Cash                                                         |  | $                      | 3       |             |  | $      | 3       |   |
| Restricted cash, cash equivalents andmarketable securities   |  |                   | 14,812  |             |  |   | 31      |   |
| Accounts receivable                                          |  |                   | 7,842   |             |  |   | 7,404   |   |
| Prepaid expenses and other                                   |  |                   | — |             |  |   | 41      |   |
| Total current assets                                         |  |                   | 22,657  |             |  |   | 7,479   |   |
| Restricted cash, cash equivalents andmarketable securities   |  |                   | 8,950   |             |  |   | 19,339  |   |
| Investment in Partnership                                    |  |                   | 35,279  |             |  |   | 36,361  |   |
| Deposits and other                                           |  |                   | 2,806   |             |  |   | 2,850   |   |
| Property, plant and equipment, net                           |  |                   | 138,281 |             |  |   | 142,468 |   |
| Construction-in-process                                      |  |                   | 21,621  |             |  |   | 6,823   |   |
| Deferred financing costs, net                                |  |                   | 9,499   |             |  |   | 9,582   |   |
| Intangible assets,net                                        |  |                   | 9,879   |             |  |   | 10,281  |   |
| Total assets                                                 |  | $                      | 248,972 |             |  | $      | 235,183 |   |
| **Liabilitiesand Stockholder's Equity**                      |  |
| Currentliabilities:                                          |  |
| Accounts payable and accruedexpenses                         |  | $                      | 6,429   |             |  | $      | 7,064   |   |
| Current portion of long-term debt                            |  |                   | 7,814   |             |  |   | 6,090   |   |
| O&M payable to Parent                                    |  |                   | 3,666   |             |  |   | 4,318   |   |
| Total current liabilities                                    |  |                   | 17,909  |             |  |   | 17,472  |   |
| Long-term debt, net of currentportion                        |  |                   | 178,692 |             |  |   | 183,399 |   |
| Long-termsubordinated loan from Parent                       |  |                   | 27,439  |             |  |   | 8,216   |   |
| Deferred income taxes                                        |  |                   | 5,532   |             |  |   | 6,052   |   |
| Asset retirement obligation                                  |  |                   | 5,614   |             |  |   | 5,429   |   |
| Total liabilities                                            |  |                   | 235,186 |             |  |   | 220,568 |   |
| Commitments and contingencies (Note5)                        |  |
| Stockholder'sequity:                                         |  |
| Common stock, par value $1per share; 1000 shares authorized; |  |
| 500 sharesissued and outstanding                             |  |                   | 1       |             |  |   | 1       |   |
| Retained earnings                                            |  |                   | 13,760  |             |  |   | 14,614  |   |
| Accumulated other comprehensiveincome                        |  |                   | 25      |             |  |   | — |   |
| Total stockholder's equity                                   |  |                   | 13,786  |             |  |   | 14,615  |   |
| Total liabilities and stockholder's equity                   |  | $                      | 248,972 |             |  | $      | 235,183 |   |
|                                                              |

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

4

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

|                                                                                                  |  |                            |         |                          |  |        |         |         |  |        |         |         |  |        |         |         |  |  |
|--------------------------------------------------------------------------------------------------|--|----------------------------|---------|--------------------------|--|--------|---------|---------|--|--------|---------|---------|--|--------|---------|---------|--|--|
|                                                                                             |  | ThreeMonths Ended June 30, |         | Six Months Ended June30, |
|                                                                                             |  | 2005                       |         | 2004                     |  | 2005   |         | 2004    |
|                                                                                             |  | (dollarsin thousands)      |         | (dollars inthousands)    |
| Revenues:                                                                                        |  |
| Energyandcapacity                                                                                |  | $                          | 11,539  |                     |  | $      | 12,035  |    |  | $      | 22,612  |    |  | $      | 22,717  |    |
| Leaseportion of energy andcapacity                                                               |  |                       | 2,607   |                     |  |   | 2,543   |    |  |   | 5,768   |    |  |   | 4,171   |    |
| Totalrevenues                                                                                    |  |                       | 14,146  |                     |  |   | 14,578  |    |  |   | 28,380  |    |  |   | 26,888  |    |
| Costof revenues:                                                                                 |  |
| Energy andcapacity                                                                               |  |                       | 11,555  |                     |  |   | 9,819   |    |  |   | 20,027  |    |  |   | 16,945  |    |
| Leaseportion of energy andcapacity                                                               |  |                       | 1,196   |                     |  |   | 1,215   |    |  |   | 2,433   |    |  |   | 1,863   |    |
| Totalcost ofrevenues                                                                             |  |                       | 12,751  |                     |  |   | 11,034  |    |  |   | 22,460  |    |  |   | 18,808  |    |
| Grossmargin                                                                                      |  |                       | 1,395   |                     |  |   | 3,544   |    |  |   | 5,920   |    |  |   | 8,080   |    |
| Generaland administrativeexpenses                                                                |  |                       | 374     |                     |  |   | 157     |    |  |   | 888     |    |  |   | 596     |    |
| Operatingincome                                                                                  |  |                       | 1,021   |                     |  |   | 3,387   |    |  |   | 5,032   |    |  |   | 7,484   |    |
| Otherincome (expense):                                                                           |  |
| Interestincome                                                                                   |  |                       | 200     |                     |  |   | 42      |    |  |   | 337     |    |  |   | 65      |    |
| Interestexpense                                                                                  |  |                       | (4,061  | )                   |  |   | (4,648  | )  |  |   | (8,229  | )  |  |   | (7,781  | )  |
| Othernon-operatingincome                                                                         |  |                       | — |                     |  |   | 101     |    |  |   | — |    |  |   | 101     |    |
| Lossbefore income taxes and equity in income ofinvestee                                          |  |                       | (2,840  | )                   |  |   | (1,118  | )  |  |   | (2,860  | )  |  |   | (131    | )  |
| Incometaxbenefit                                                                                 |  |                       | 1,080   |                     |  |   | 429     |    |  |   | 1,088   |    |  |   | 51      |    |
| Equityin income ofinvestee                                                                       |  |                       | 465     |                     |  |   | 346     |    |  |   | 918     |    |  |   | 735     |    |
| Netincome(loss)                                                                                  |  |                       | (1,295  | )                   |  |   | (343    | )  |  |   | (854    | )  |  |   | 655     |    |
| Othercomprehensive income(loss):                                                                 |  |                       |    |                     |  |   |    |    |  |   |    |    |  |   |    |    |
| Unrealizedgain (loss) on marketable securities, net of taxes of $(2,000) and$15,000,respectively |  |                       | (4      | )                   |  |   | — |    |  |   | 25      |    |  |   | — |    |
| Comprehensiveincome(loss)                                                                        |  | $                          | (1,299  | )                   |  | $      | (343    | )  |  | $      | (829    | )  |  | $      | 655     |    |
|                                                                                                  |

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

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

|                                                                                  |  |                       |         |                  |  |                                     |         |        |  |        |         |         |  |        |         |        |  |        |        |         |  |  |
|----------------------------------------------------------------------------------|--|-----------------------|---------|------------------|--|-------------------------------------|---------|--------|--|--------|---------|---------|--|--------|---------|--------|--|--------|--------|---------|--|--|
|                                                                             |  | CommonStock           |         | RetainedEarnings |  | AccumulatedOtherComprehensiveIncome |         | Total  |
|                                                                             |  | Shares                |         | Amount           |  |
|                                                                             |  | (dollars inthousands) |         |             |  |                                |         |   |  |   |
|                                                                             |  |                  |    |             |  |                                |    |   |  |   |    |    |  |   |    |   |  |   |   |    |
| **Balanceat December 31, 2004**                                                  |  |                  | 500     |             |  | $                                   | 1       |   |  | $      | 14,614  |    |  | $      | — |   |  | $      | 14,615 |    |
| Net loss                                                                         |  |                  | — |             |  |                                | — |   |  |   | (854    | )  |  |   | — |   |  |   | (854   | )  |
| Unrealized gain on marketablesecurities available-for-sale, net of related taxes |  |                  | — |             |  |                                | — |   |  |   | — |    |  |   | 25      |   |  |   | 25     |    |
| **Balance at June 30,2005**                                                      |  |                  | 500     |             |  | $                                   | 1       |   |  | $      | 13,760  |    |  | $      | 25      |   |  | $      | 13,786 |    |
|                                                                                  |

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

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

|                                                                                        |  |                         |         |         |  |        |          |         |  |  |
|----------------------------------------------------------------------------------------|--|-------------------------|---------|---------|--|--------|----------|---------|--|--|
|                                                                                   |  | SixMonths Ended June30, |
|                                                                                   |  | 2005                    |         | 2004    |
|                                                                                   |  | (dollarsin thousands)   |
| **Cash flows from operatingactivities:**                                               |  |                    |    |    |  |   |     |    |
| Net income(loss)                                                                       |  | $                       | (854    | )  |  | $      | 655      |    |
| Adjustmentsto reconcile net income (loss) to net cash provided by operatingactivities: |  |                    |    |    |  |   |     |    |
| Depreciation                                                                           |  |                    | 4,921   |    |  |   | 4,282    |    |
| Amortization                                                                           |  |                    | 927     |    |  |   | 1,066    |    |
| Accretionof asset retirementobligation                                                 |  |                    | 185     |    |  |   | 152      |    |
| Equity inincome ofinvestee                                                             |  |                    | (918    | )  |  |   | (748     | )  |
| DistributionsfromPartnership                                                           |  |                    | 1,480   |    |  |   | 1,461    |    |
| Deferredincome taxbenefit                                                              |  |                    | (1,098  | )  |  |   | (37      | )  |
| Changesin operating assets and liabilities , net ofacquisitions:                       |  |                    |    |    |  |   |     |    |
| Accountsreceivable                                                                     |  |                    | (438    | )  |  |   | (431     | )  |
| Prepaidexpenses andother                                                               |  |                    | 41      |    |  |   | 323      |    |
| Accounts payableand accruedexpenses                                                    |  |                    | (635    | )  |  |   | (2,391   | )  |
| Payableto Parent for operatingactivities                                               |  |                    | (652    | )  |  |   | (1,633   | )  |
| Netcash provided by operatingactivities                                                |  |                    | 2,959   |    |  |   | 2,699    |    |
| **Cashflows from investingactivities:**                                                |  |                    |    |    |  |   |     |    |
| Net changein restricted cash, cash equivalents and marketablesecurities                |  |                    | (4,352  | )  |  |   | (47,195  | )  |
| Capitalexpenditures                                                                    |  |                    | — |    |  |   | (2,674   | )  |
| Distributionsfrompartnership                                                           |  |                    | 1,020   |    |  |   | 2,179    |    |
| Repaymentson advances toPartnership                                                    |  |                    | 63      |    |  |   | —  |    |
| Depositsand other                                                                      |  |                    | 44      |    |  |   | (2,313   | )  |
| Cashpaid foracquisition                                                                |  |                    | — |    |  |   | (74,367  | )  |
| Netcash used in investingactivities                                                    |  |                    | (3,225  | )  |  |   | (124,370 | )  |
| **Cashflows from financingactivities:**                                                |  |                    |    |    |  |   |     |    |
| BorrowingsfromParent                                                                   |  |                    | 13,971  |    |  |   | 37,091   |    |
| Repaymentof long-term subordinated loan fromParent                                     |  |                    | (10,284 | )  |  |   | (88,183  | )  |
| Proceedsfrom issuance of long-termdebt                                                 |  |                    | — |    |  |   | 190,000  |    |
| Repaymentsof long-termdebt                                                             |  |                    | (2,983  | )  |  |   | (594     | )  |
| Deferreddebt issuancecosts                                                             |  |                    | (438    | )  |  |   | (8,938   | )  |
| Netcash provided by financingactivities                                                |  |                    | 266     |    |  |   | 129,376  |    |
| Netincrease in cash                                                                    |  |                    | — |    |  |   | 7,705    |    |
| Cashat beginning ofperiod                                                              |  |                    | 3       |    |  |   | 3        |    |
| Cashat end ofperiod                                                                    |  | $                       | 3       |    |  | $      | 7,708    |    |
| **Supplementalnon-cashactivity:**                                                      |  |                    |    |    |  |   |     |    |
| Payable toParent for capitalexpenditures                                               |  | $                       | 15,532  |    |  | $      | —  |    |
|                                                                                        |

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

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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 for interim financial statements.Accordingly, they do not contain all the information and notes requiredby accounting principles generally accepted in the United States ofAmerica for annual financial statements. In the opinion of management,the unaudited condensed consolidated interim financial statementsreflect all adjustments, which include only normal recurringadjustments, necessary for a fair statement of the Company'sconsolidated financial position as of June 30, 2005, consolidatedresults of operations for the three and six-month periods ended June30, 2005 and 2004, and condensed consolidated cash flows for thesix-month periods ended June 30, 2005 and 2004.

The financialdata and other information disclosed in these notes to the condensedconsolidated financial statements related to these periods areunaudited. The results for the three and six-month periods ended June30, 2005 are not necessarily indicative of the results to be expectedfor 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 June 30, 2005 and December 31, 2004, the Company haddeposits in one U.S. financial institution, in which deposits werefederally insured up to $100,000 per account.

All of theCompany's revenues, and the related receivable balances, areearned from two power companies: Southern California Edison Company("SCE") and Sierra Pacific Power Company("SPPC"). Revenues from SCE and SPPC for thethree months ended June 30, 2005 and 2004 amounted to 51% and49%, and 55% and 45%, respectively. Revenues fromSCE and SPPC for the six months ended June 30, 2005 and 2004 amountedto 47% and 53%, and 53% and 47%,respectively. The Company performs ongoing credit evaluations of itscustomers' financial condition. The Company has historically beenable to collect on all of its receivable balances, and accordingly, noprovision for doubtful accounts has been made.

NOTE 2 –SIGNIFICANT ACCOUNTING POLICIES

Marketable securities

Marketable securities consist of debt securities (preferred auctionrated securities). The Company accounts for such securities inaccordance with Statement of Financial Accounting Standards("SFAS") No. 115, Accounting for CertainInvestments in Debt and Equity Securities. The Company determinesthe appropriate classification of all marketable securities asheld-to-maturity, 

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

available-for-sale or trading at the time ofthe purchase and re-evaluates such classification at each balance sheetdate. At June 30, 2005, all of the Company's investments inmarketable securities were classified as available-for-sale securitiesand as a result, were reported at their fair value upon the quotedmarket prices of such securities at quarter end. Net unrealized gainsor losses are reported as a component of accumulated othercomprehensive income in stockholder's equity. Net realized gainsor losses on trading securities are reported in interest income. Thenet unrealized gains at June 30, 2005 were $25,000, net of relatedtaxes of $15,000.

Comprehensive income reporting

TheCompany accounts for comprehensive income in accordance with SFAS No.130, Reporting Comprehensive Income, which requirescomprehensive income and its components to be reported when a companyhas items of other comprehensive income. Comprehensive income includesnet income plus other comprehensive income, which for the Companyconsists of unrealized gains or losses on marketable securitiesavailable-for-sale, net of related taxes.

New accountingpronouncements

SFAS No. 153 − Exchange ofNonmonetary Assets

In December 2004, the Financial AccountingStandards Board ("FASB") issued SFAS No. 153,Exchanges of Nonmonetary Assets − An Amendment of APB OpinionNo. 29. SFAS No. 153 amends APB Opinion No. 29, Accounting forNonmonetary Transactions. The amendments made by SFAS No. 153 arebased on the principle that exchanges of nonmonetary 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 assetexchanges occurring in fiscal periods beginning after June 15, 2005(July 1, 2005 for the Company). Early application of SFAS No. 153 ispermitted. The provisions of SFAS No. 153 shall be appliedprospectively. The Company does not expect SFAS No. 153 to have amaterial impact on its results of operations and financial position infuture periods.

FIN No. 47 − Accounting forConditional Retirement Obligations, an Interpretation of FASBStatementNo. 143

In March of 2005, FASB issued FASBInterpretation No.  47, Accounting for Conditional RetirementObligations, an Interpretation of FASB Statement No. 143("FIN No.  47"), which requirescompanies to recognize a liability for the fair value of a legalobligation to perform asset-retirement activities that are conditionalon a future event, if the amount can be reasonably estimated. FIN No.47 is effective no later than the end of fiscal years ending afterDecember 15, 2005 (December 31, 2005 for the Company). Retrospectiveapplication for interim financial information is permitted but is notrequired. The Company must adopt FIN  No. 47 by the end of 2005.Early adoption of FIN No. 47 is encouraged. The Company does not expectFIN No. 47 to have a material impact on its results of operations andfinancial position in future periods.

SFAS No. 154− Accounting Changes and Error Corrections

In June 2005,the FASB issued SFAS No. 154, Accounting Changes and ErrorCorrections. SFAS No. 154 replaces APB Opinion No. 20,Accounting Changes and FAS No. 3, Reporting Accounting Changes inInterim Financial Statements. SFAS No. 154 requires that avoluntary change in accounting principle be applied retrospectivelywith all prior period financial statements presented on the new

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

accounting principle. SFAS No. 154 alsorequires that a change in method of depreciating or amortizing along-lived non-financial asset be accounted for prospectively as achange in estimate, and correction of errors in previously issuedfinancial statements should be termed a restatement. SFAS No. 154 iseffective for accounting changes and correction of errors made infiscal years beginning after December 15, 2005 (January 1, 2006 for theCompany). The Company does not expect SFAS No. 154 to have a materialimpact on its results of operations and financial position in futureperiods.

NOTE 3 – INVESTMENT IN PARTNERSHIP

The Company has a 50% interest in the Mammoth Project, whichis comprised of three geothermal power plants. A $9.3 million basisdifference is amortized over the remaining useful life of the property,plant and equipment and the power purchase agreements, which range from12 to 17 years. The Company's Parent operates and maintains thegeothermal power plants under an operating and maintenance("O&M") agreement. The Company's50% ownership interest in Mammoth is accounted for under theequity method of accounting as the Company has the ability to exercisesignificant influence, but not control, over Mammoth.

Thecondensed financial position and results of operations of Mammoth aresummarized below:

|                          |  |               |        |                 |  |        |        |        |  |  |
|--------------------------|--|---------------|--------|-----------------|--|--------|--------|--------|--|--|
|                     |  | June30,2005   |        | December31,2004 |
|                     |  | (inthousands) |
| Condensed balancesheets: |  |
| Currentassets            |  | $             | 10,588 |            |  | $      | 11,088 |   |
| Non-currentassets        |  |          | 81,715 |            |  |   | 83,944 |   |
| Currentliabilities       |  |          | 780    |            |  |   | 924    |   |
| Non-currentliabilities   |  |          | 3,820  |            |  |   | 3,774  |   |
| Partners'Capital         |  |          | 87,703 |            |  |   | 90,334 |   |
|                          |

|                                                 |  |                         |       |         |  |        |       |         |  |  |
|-------------------------------------------------|--|-------------------------|-------|---------|--|--------|-------|---------|--|--|
|                                            |  | SixMonths Ended June30, |
|                                            |  | 2005                    |       | 2004    |
|                                            |  | (inthousands)           |
| Condensed statements ofoperations:              |  |
| Revenues                                        |  | $                       | 7,880 |    |  | $      | 7,690 |    |
| Grossmargin                                     |  |                    | 2,465 |    |  |   | 1,772 |    |
| Netincome                                       |  |                    | 2,369 |    |  |   | 1,778 |    |
| Company'sequity in income of Mammoth:           |  |
| 50% ofMammoth net income                        |  | $                       | 1,184 |    |  | $      | 889   |    |
| Plus amortization of the equity basisdifference |  |                    | 297   |    |  |   | 297   |    |
|                                            |  |                    | 1,481 |    |  |   | 1,186 |    |
| Lessincometaxes                                 |  |                    | (563  | )  |  |   | (438  | )  |
| Total                                           |  | $                       | 918   |    |  | $      | 748   |    |
|                                                 |

NOTE4 – SENIOR SECURED NOTES

On February 13, 2004, theCompany completed the issuance of $190 million81⁄4% senior secured notes (the"Notes" or "Senior SecuredNotes") pursuant to an exempt offering under Rule 144A andRegulation S of the Securities Act of 1933, as amended (the"Offering"), from which it received the netcash proceeds of approximately $179.7 million after deduction ofdeferred bond issuance costs of approximately $10.3 million. Such netproceeds have been included in deferred financing costs at

10

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

December 31, 2004. The Notes have a finalmaturity date of December 30, 2020. Principal and interest on the Notesare payable in semi-annual payments that commenced on June 30, 2004.The Notes are collateralized by substantially all of the assets of theCompany and fully and unconditionally guaranteed by all of the whollyowned subsidiaries of the Company, and (with certain exceptions) by allreal property, contractual rights, revenues and bank accounts,intercompany notes, certain insurance policies and guarantees of theCompany. There are various restrictive covenants under the Notes, whichinclude limitations on additional indebtedness and payment ofdividends.

The Company may redeem the Notes, in whole or inpart, at any time at redemption price equal to the principal amount ofthe Notes to be redeemed plus accrued interest, premium and liquidateddamages, if any, plus a "make-whole" premium.Upon certain events, as defined in the indenture governing the Notes,the Company may be required to redeem a portion of the Notes at aredemption price ranging from 100% to 101% of theprincipal amount of the Notes being redeemed plus accrued interest,premium and liquidated damages, if any.

A registration statementon Form S-4 relating to the Notes was declared effective by theSecurities and Exchange Commission on February 9, 2005. Pursuant to theregistration statement, the Company made an offer to the holders of theNotes to exchange them for publicly registered exchange notes withsubstantially identical terms until March 11, 2005. On March 16, 2005the exchange offer was completed.

As required under the terms ofthe Notes, the Company has restricted cash accounts, consisting of thefollowing:

Galena's constructionreserve

As required under the terms ofthe Notes, the Company set aside approximately $25.8 million ($8.9million at June 30, 2005), to replace the existing equipment at theSteamboat 1/1A project with more efficient equipment, in order tooptimize the geothermal resources available. After such replacement,the Company will rename the Steamboat 1/1A project as the Galenaproject. The Company expects that the construction will be complete andthe project will achieve commercial operations by the end of 2005.

Debt service reserve

The Company maintains an account, which may befunded by cash or backed by letters of credit, to fund an amountsufficient to pay scheduled debt service amounts, including principaland interest, due under the terms of the Notes in the following sixmonths. As of June 30, 2005, the balance of such account was $10.8million in cash.

Revenue reserve

The Company deposits all revenues received intothe revenue account. Such amounts are used to pay operating expensesand fund the debt service reserve account, but the funds are onlyavailable 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 June 30, 2005, the balance of such accountwas $4.1 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 June 30, 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 

11

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

any independent assets or operations. ORNI 1and ORNI 2's sole purpose is to each hold a 50% ownershipinterest in Brady Power Partners. ORNI 7's sole purpose is tohold 100% ownership interest in Steamboat Geothermal LLC andSteamboat Development Corp. OrMammoth's sole purpose is to hold a50% ownership interest in Mammoth-Pacific L.P.

NOTE 5– COMMITMENTS AND CONTINGENCIES

LOCAgreement

Ormat Nevada, Inc. (the"Parent") has a letter of credit and loanagreement ("LOC Agreement") with HudsonUnited Bank pursuant to which the bank agreed to issue one or moreletters of credit for an aggregate amount of up to $15 million. The LOCAgreement expires on June 30, 2007, which expiry date shall be extendedfor successive 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 December 31,2004, letters of credit amounting to $10.8 million were issued underthe LOC Agreement, which were used to replace cash on deposit inreserve funds as a pledge against the Notes. As of June 30, 2005, suchletters of credit have not been renewed by the Parent.

Contingencies

In response to an order issued by aCalifornia State Court of Appeals, the California Public UtilitiesCommission ("CPUC"), has commenced anadministrative proceeding 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 15, 2005, the CPUCissued a draft decision affirming that SRAC pricing 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 adjustmentscould be required for any of the Company's Qualifying Facilitiesin California whose payments are tied to SRAC pricing, including theMammoth and Ormesa projects. Currently it is not possible to predictthe final outcome of such proceeding; however, any retroactive priceadjustments required to be made in relation to any of theCompany's projects may require such projects to make refundpayments or charge less for future sales, which could materially andadversely affect the business, financial condition, future results andcash flow of the Company.

Steamboat Geothermal LLC("SG") is a defendant in litigation relatingto a dispute over amounts owed to the plaintiffs under certainoperating agreements. SG has initiated settlement discussions with theplaintiff and the Company believes that any outcome will not have amaterial impact on the Company's results of operations.

Inconnection with the power purchase agreements for the Ormesa project,Southern California Edison Company ("SCE")has challenged the contract rate for the power supplied by the GEM 2and GEM 3 plants to the Ormesa project for auxiliary purposes. SCEcontends that California ISO real-time prices should apply, whilemanagement believes that SP-15 prices quoted by NYMEX should apply.According to SCE's estimation, the amount under dispute isapproximately $2.5 million. Management is in early discussions with SCEand does not believe that the resolution will materially affect theCompany's financial results.

12

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

The Company is a defendant in variousother legal suits in the ordinary course of business. It is the opinionof the Company's management that the expected outcome of thesematters, individually or in the aggregate, will not have a materialeffect on the results of operations and financial condition of theCompany.

Certain of the Company's projects are subject tocontested Federal Energy Regulatory Commission("FERC") rulings whereby an adverse outcomecould result in the refunding of a portion of previously recognizedrevenues to customers and/or a reduction in future revenues from thoseprojects. The outcome of these matters cannot be predicted at thistime.

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

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|              |                                                                                                                    |
|--------------|--------------------------------------------------------------------------------------------------------------------|
| •  | 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 "ManagementDiscussion and Analysis of Financial Conditions of Results ofOperations — Risk Factors" section of our annualreport on Form 10-K for the year ended December 31, 2004 as well asthose set forth in our press releases, reports and other filings madewith Securities and Exchange Commission.

General

Overview

We are engaged in the geothermal energy power business. We wereformed in December 2001, to develop, construct and own, through certaindirect and indirect subsidiaries, clean, environmentally friendlygeothermal power projects in the United States. Our business currentlyconsists of our investment in power plants producing electricity fromgeothermal resources. Our business is characterized by relativelypredictable revenues generated by our power plants pursuant tolong-term power purchase agreements, with terms which are generally upto 20 years.

During the three and six-month periods ended June30, 2005, our total revenues generated by our wholly-owned power plantswere $14.1 million and $28.4 million, respectively. In addition, our50% share in the Mammoth project's revenues in theseperiods was $1.9 million and $3.9 million, respectively.

Duringthe three and six-month periods ended June 30, 2005, our projectsgenerated 227,513 MWh and 481,977 MWh, respectively, which include our50% share in the Mammoth project.

When making decisionsabout potential acquisitions or the development of new projects, ourmanagement typically focuses on the internal rate of return of therelevant investment, relevant technical and geological matters andother relevant business considerations. Additionally, our managementevaluates our operating projects based on the performance of suchprojects in terms of revenues and expenses in contrast to projects thatare under development, which our management evaluates based on costsattributable to each such project.

As a result of theacquisition of Steamboat 2/3 Project which was completed in February2004, our results for the periods contained in the financial statementsin this quarterly report may not be comparable with each other.

Recent Developments

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.

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On March 16, 2005, we completed anoffering to exchange $1,000 principal amount of our Senior SecuredNotes that were registered under the Securities Act of 1933, asamended, for each $1,000 principal amount of our then outstandingSenior Secured Notes that were issued on February 13, 2004 in a capitalmarkets offering subject to Rule 144A and Regulation S of theSecurities Act of 1933, as amended. As of June 30, 2005, there were$186.5 million in aggregate principal amount of Senior Secured Notesoutstanding.

Trends and Uncertainties

The geothermalindustry in the United States has historically experienced significantgrowth followed by a consolidation of owners and operators ofgeothermal 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 powerplants to claim credits on electricity sold during the first five or 10years after a project achieves commercial operation, depending on whenthe project is put into service. We see the increasing demand forenergy generated from geothermal and other renewable resources in theUnited States and the further introduction of renewable portfoliostandards and the production tax credit as the most significant trendsaffecting our industry today and in the immediate future. Ouroperations and the trends that from time to time impact our operationsare subject to market cycles.

Although other trends, factors anduncertainties may impact our operations and financial condition,including many that we do not or cannot foresee, we believe that ourresults of operations and financial condition for the foreseeablefuture will be affected by the following trends, factors anduncertainties:

|              |                                                                                                                                                                                                                                                   |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We expect to continue togenerate all of our revenues from the sale of electricity fromourpower plants. All of our current revenues from the sale ofelectricity are derived fromfully-contracted payments underlong-term power purchaseagreements. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | The enactment of theDominici-Boston Energy Policy Act of 2005, which authorizes FERC torevise PURPA so as to terminate the obligation of electric utilities toenter into new contracts to purchase the output of a QualifyingFacility if FERC finds that there is an accessible competitive marketfor energy and capacity from the Qualifying Facility. The legislationdoes not affect existing power purchase agreements. We do not expectthis change in law to affect our U.S. projects significantly, as allexcept one of the contracts (a Steamboat 1 contract with Sierra PacificPower Co., expiring in 2006) are long-term. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | The viability of the geothermal resourcesutilized by our power plants depends on variousfactors such as theheat content of the geothermal reservoir, useful life of the reservoir(theterm during which such geothermal reservoir has sufficientextractable fluids for ouroperations) and operational factorsrelating to the extraction of the geothermal fluids. Ourgeothermalpower plants may experience an unexpected decline in the capacity oftheirrespective geothermal wells. Such factors, together with thepossibility that we may fail to findcommercially viable geothermalresources in the future, represent significant uncertaintiesweface in connection with ouroperations. |

|              |                                                                                                                                                                                                                                                               |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We have experiencedsignificant growth through the acquisition of the Steamboat 2/3projecton February 11, 2004 and we expect to experience additionalgrowth due to the enhancementof the Mammoth and Ormesa projectsand the construction of the Galenaproject. |

|              |                                                                                                                                                                                                                                                                                   |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We expect to continue tobenefit from the increasing demand for renewable energy as aresultof favorable legislation adopted by California and Nevada(where all of our projects arelocated). In both states, relevantlegislation currently requires that an increasing percentageof |

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|        |                                                                                                                                                                                                                                                                                                                                  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | the electricity supplied by electric utilitycompanies operating in such states be derived fromrenewable energyresources until certain pre-established goals are met. We expect thattheadditional demand for renewable energy from utilities in suchstates will create additionalopportunities for us to expandexisting projects. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | The United Statesextended a tax subsidy and increased the amount for companies that usegeothermal steam or fluid to generate electricity as part of the EnergyPolicy Act of 2005 that became law on August 8, 2005. The tax subsidyis a "production tax credit" of 1.9 cents perkWh. It may be claimed on the electricity output of new geothermalpower plants put into service during a "windowperiod" that runs from October 23, 2004 through December31, 2007. (The window had been scheduled to close at the end of thisyear, but the new act extended it.) Credit may be claimed for fiveyears on the output from new geothermal power plants put into serviceduring the first part of the window period, from October 23, 2004 toAugust 8, 2005. Such plants put into service during the remaining ofthe "window period" qualify for 10 years oftax credits. Production tax credits may improve our financial results.We, as the owner of any new projects that might be put into serviceduring this window period, must choose between this production taxcredit and a 10% investment tax credit. The power purchaseagreements in connection with our projects allow the power purchaser tobenefit from part of such production tax credits, if and when theybecome available to us. |

Revenues

All of our revenuesare, and will continue to be, derived from payments under oursubsidiaries' power purchase agreements. Equity distributions dueto us from our 50% interest in the Mammoth project are dependentupon payments under its power purchase agreements. Such revenues aresubject to seasonal variations, as more fully described below in thesection entitled"Seasonality".

Most of ourpower purchase agreements provide for the payment of capacity andenergy payments. Generally, capacity payments are payments calculatedbased on the amount of time that our power plants are available togenerate electricity. Some of our power purchase agreements provide forbonus capacity 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 andcapacity" revenue, with the remaining revenue related tothe production and delivery of the energy presented as"energy and capacity" revenue inour financial statements. As the lease revenue and the energy andcapacity revenues are derived from the same arrangement, we analyzesuch revenues, and related costs, on a combined basis for managementpurposes.

Seasonality

The demand for the electricitygenerated by our projects and the prices paid for such electricitypursuant to our power purchase agreements are subject to seasonalvariations. The demand for electricity from the Mammoth project and theOrmesa project is the highest in the summer months of June throughSeptember, because the power purchaser for those projects, SouthernCalifornia Edison Company, delivers more electricity to its Californiamarkets during such period in order to meet demand for air conditioningand other energy-intensive cooling systems utilized during such summermonths. The demand for electricity from the Steamboat complex and theBrady project is more 

17

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balanced, consisting of both summer andwinter peaks that reflect the greater temperature variation in Nevada.In California, the capacity rates payable pursuant to the applicablepower purchase agreement are higher in the summer months and as aresult we receive higher revenues during such months. In contrast,there are no significant changes in prices during the year payablepursuant to our power purchase agreement for the Nevada projects. Inthe winter, due principally to the lower ambient temperature, our powerplants produce more energy and as a result we receive higher energyrevenues. However, the higher capacity payments payable by the powerpurchaser in California in the summer months as a result of theincrease in demand and in prices has a more significant impact on ourrevenues than that of the higher energy revenues generally generated inwinter due to increased efficiency, and as a result our revenues aregenerally higher in the summer than in the winter.

Expenses

The principal expenses attributable to each of ouroperating projects include expenses under the operations andmaintenance agreements between each project and Ormat Nevada, such assalaries, lease expenses, royalties, geothermal fluid supply, startupand auxiliary electricity purchases, property tax and insurance, and,for the California projects, transmission charges, scheduling chargesand sweet water purchases for plant cooling towers.

Theprincipal project expenses under the operations and maintenanceagreement include:

|              |                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | For each projectother than the Mammoth project, a fixed monthly fee, subject toadjustments based on the Consumer Price Index, Urban Consumers-Westbased on January 1 of each year, which covers all costs associated withstaffing, administration, ordinary maintenance and certain incidentalcosts at each plant and routine replacement of parts and consumables(other than for the wells). |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | For eachproject other than the Mammoth project, actual cost and expenses plus a10% mark-up for certain "extraordinary operationexpenses". These extraordinary operation expenses includeall major corrective maintenance work, any modifications, additions, ordeletions to the projects' equipment, any cost incurred as aresult of any change in law, authorizations, power purchase agreements,plant connection agreement or in exercise of emergency managementpowers, any cost incurred by Ormat Nevada with respect to ourenvironmental responsibilities, and work in connection with thegeothermal fields and wells described in the operations and maintenanceagreement. |

|              |                                                                                                                                                                                                                                                                                         |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Payments to governmentagencies and private parties for the use of geothermal resources andsite leases where plants are situated are recorded as a component ofcost of revenues. For the three and six-month periods ended June 30,2005, such expenses were approximately 1% ofrevenues. |

|              |                                                                                                                                                                                                                                                                                                                                                                                |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Royalty payments are paymentsmade as compensation for the right to use certain geothermal resourcesand are included as a component of cost of revenues and are paid as apercentage of the revenues derived from the associated geothermalrights. For the three and six- month periods ended June 30, 2005,royalties were approximately 3.1% and 2.9% of revenues,respectively. |

Under a fluid supply agreement, Brady pays toWestern States a royalty payment of 1% of the net revenues ofthe Desert Peak 1 plant derived from the sale of electricity under theBrady project's power purchase agreement and reimburses WesternStates for certain costs. These payments are included as a component ofcost of revenues.

Critical Accounting Policies

Acomprehensive discussion of our critical accounting policies 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.

Marketable Securities

Weinvest our excess cash in marketable securities, which consist of debtsecurities (preferred auction rated securities), and account for suchsecurities in accordance with Statement of Financial 

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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 June 30, 2005, all of our investments in marketable securitieswere classified as available-for-sale securities and as a result, werereported at their fair value upon the quoted market prices of suchsecurities at quarter end. Net unrealized gains or losses on marketablesecurities classified as available-for-sale are reported as a componentof accumulated other comprehensive income in stockholder'sequity. Net realized gains or losses on trading securities are reportedin interest income.

New Accounting Pronouncements

Exchange of Nonmonetary Assets

In December2004, the Financial Accounting Standards Board("FASB") issued SFAS No. 153, Exchanges ofNonmonetary Assets – An Amendment of APB Opinion No. 29. SFASNo. 153 amends APB Opinion No. 29, Accounting for NonmonetaryTransactions. The amendments made by SFAS No. 153 are based on theprinciple that exchanges of nonmonetary assets should be measured basedon the fair value of the assets exchanged. Further, the amendmentseliminate the exception for non monetary 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. The provisionsof SFAS No.153 shall be applied prospectively. We do not expect SFASNo.153 to have a material impact on our results of operations andfinancial position in future periods.

Accounting for Conditional RetirementObligations

In March of 2005, FASB issued FASB InterpretationNo.  47, Accounting for Conditional RetirementObligations, an Interpretation of FASB Statement No.143("FIN No.  47"), which requirescompanies to recognize a liability for the fair value of a legalobligation to perform asset-retirement activities that are conditionalon a future event, if the amount can be reasonably estimated. FINNo.  47 is effective no later than the end of fiscal years endingafter December 15, 2005 (December 31, 2005 for us). Retrospectiveapplication for interim financial information is permitted but is notrequired. Early adoption of FIN No. 47 is encouraged. We not expect FINNo. 47 to have a material impact on our results of operations andfinancial position in future periods.

Accounting Changes and Error Corrections

In June 2005, the FASB issued SFAS No. 154, Accounting Changesand Error Corrections. SFAS No. 154 replaces APB Opinion No. 20,Accounting Changes and FAS No. 3, Reporting Accounting Changes inInterim Financial Statements. SFAS No. 154 requires that avoluntary change in accounting principle be applied retrospectivelywith all prior period financial statements presented on the newaccounting principle. SFAS No. 154 also requires that a change inmethod of depreciating or amortizing a long-lived non-financial assetbe accounted for prospectively as a change in estimate, and correctionof errors in previously issued financial statements should be termed arestatement. SFAS No. 154 is effective for accounting changes andcorrection of errors made in fiscal years beginning after December 15,2005 (January 1, 2006 for us). We do not expect SFAS No. 154 to have amaterial impact on our results of operations and financial position infuture periods.

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Results of Operations

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

|                                                         |  |                           |         |                         |  |        |        |         |  |        |        |         |  |        |        |         |  |  |
|---------------------------------------------------------|--|---------------------------|---------|-------------------------|--|--------|--------|---------|--|--------|--------|---------|--|--------|--------|---------|--|--|
|                                                    |  | ThreeMonths EndedJune 30, |         | Six Months EndedJune30, |
|                                                    |  | 2005                      |         | 2004                    |  | 2005   |        | 2004    |
|                                                    |  | (inthousands)             |         | (inthousands)           |
| **Statements of OperationsHistoricalData:**             |  |
| Revenues:                                               |  |
| EnergyandCapacity                                       |  | $                         | 11,539  |                    |  | $      | 12,035 |    |  | $      | 22,612 |    |  | $      | 22,717 |    |
| Leaseportion of energy andcapacity                      |  |                      | 2,607   |                    |  |   | 2,543  |    |  |   | 5,768  |    |  |   | 4,171  |    |
| Totalrevenues                                           |  |                      | 14,146  |                    |  |   | 14,578 |    |  |   | 28,380 |    |  |   | 26,888 |    |
| Costof revenues:                                        |  |
| Energy andCapacity                                      |  |                      | 11,555  |                    |  |   | 9,819  |    |  |   | 20,027 |    |  |   | 16,945 |    |
| Leaseportion of energy andcapacity                      |  |                      | 1,196   |                    |  |   | 1,215  |    |  |   | 2,433  |    |  |   | 1,863  |    |
| Totalcost ofrevenues                                    |  |                      | 12,751  |                    |  |   | 11,034 |    |  |   | 22,460 |    |  |   | 18,808 |    |
| Grossmargin                                             |  |                      | 1,395   |                    |  |   | 3,544  |    |  |   | 5,920  |    |  |   | 8,080  |    |
| Generaland administrativeexpenses                       |  |                      | 374     |                    |  |   | 157    |    |  |   | 888    |    |  |   | 596    |    |
| OperatingIncome                                         |  |                      | 1,021   |                    |  |   | 3,387  |    |  |   | 5,032  |    |  |   | 7,484  |    |
| Otherincome (expense):                                  |  |
| Interestincome                                          |  |                      | 200     |                    |  |   | 42     |    |  |   | 337    |    |  |   | 65     |    |
| Interestexpense                                         |  |                      | (4,061  | )                  |  |   | (4,648 | )  |  |   | (8,229 | )  |  |   | (7,781 | )  |
| Othernon-operatingincome                                |  |                      | — |                    |  |   | 101    |    |  |   |   |    |  |   | 101    |    |
| Lossbefore income taxes and equity in income ofinvestee |  |                      | (2,840  | )                  |  |   | (1,118 | )  |  |   | (2,860 | )  |  |   | (131   | )  |
| Incometaxbenefit                                        |  |                      | 1,080   |                    |  |   | 429    |    |  |   | 1,088  |    |  |   | 51     |    |
| Equityin income ofinvestee                              |  |                      | 465     |                    |  |   | 346    |    |  |   | 918    |    |  |   | 735    |    |
| Netincome(loss)                                         |  | $                         | (1,295  | )                  |  | $      | (343   | )  |  | $      | (854   | )  |  | $      | 655    |    |
|                                                         |

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|                                                         |  |                           |        |                         |  |        |        |          |  |        |        |          |  |        |        |         |  |  |
|---------------------------------------------------------|--|---------------------------|--------|-------------------------|--|--------|--------|----------|--|--------|--------|----------|--|--------|--------|---------|--|--|
|                                                    |  | ThreeMonths EndedJune 30, |        | Six Months EndedJune30, |
|                                                    |  | 2005                      |        | 2004                    |  | 2005   |        | 2004     |
| **Statementsof Operations PercentageData:**             |  |                      |   |                    |  |   |   |     |  |   |   |     |  |   |   |    |
| Revenues:                                               |  |                      |   |                    |  |   |   |     |  |   |   |     |  |   |   |    |
| EnergyandCapacity                                       |  |                      | 81.6   | %                  |  |   | 82.6   | %   |  |   | 79.7   | %   |  |   | 84.5   | %  |
| Leaseportion of energy andcapacity                      |  |                      | 18.4   |                    |  |   | 17.4   |     |  |   | 20.3   |     |  |   | 15.5   |    |
| Totalrevenues                                           |  |                      | 100.0  |                    |  |   | 100.0  |     |  |   | 100.0  |     |  |   | 100.0  |    |
| Costofrevenues:                                         |  |                      |   |                    |  |   |   |     |  |   |   |     |  |   |   |    |
| EnergyandCapacity                                       |  |                      | 100.1  |                    |  |   | 81.6   |     |  |   | 88.6   |     |  |   | 74.6   |    |
| Leaseportion of energy andcapacity                      |  |                      | 45.9   |                    |  |   | 47.8   |     |  |   | 42.2   |     |  |   | 44.7   |    |
| Totalcost ofrevenues                                    |  |                      | 90.1   |                    |  |   | 75.7   |     |  |   | 79.1   |     |  |   | 69.9   |    |
| Grossmargin                                             |  |                      | 9.9    |                    |  |   | 24.3   |     |  |   | 20.9   |     |  |   | 30.1   |    |
| Generaland administrativeexpenses                       |  |                      | 2.7    |                    |  |   | 1.1    |     |  |   | 3.1    |     |  |   | 2.3    |    |
| OperatingIncome                                         |  |                      | 7.2    |                    |  |   | 23.2   |     |  |   | 17.7   |     |  |   | 27.8   |    |
| Otherincome(expense):                                   |  |                      |   |                    |  |   |   |     |  |   |   |     |  |   |   |    |
| Interestincome                                          |  |                      | 1.4    |                    |  |   | 0.3    |     |  |   | 1.2    |     |  |   | 0.2    |    |
| Interestexpense                                         |  |                      | (28.7  | )                  |  |   | (31.9  | )   |  |   | (29.0  | )   |  |   | (28.9  | )  |
| Othernon-operatingincome                                |  |                      | 0.0    |                    |  |   | 0.7    |     |  |   | 0.0    |     |  |   | 0.4    |    |
| Lossbefore income taxes and equity in income ofinvestee |  |                      | (20.1  | )                  |  |   | (7.7   | )   |  |   | (10.1  | )   |  |   | (0.5   | )  |
| Incometaxbenefit                                        |  |                      | 7.6    |                    |  |   | 2.9    |     |  |   | 3.8    |     |  |   | 0.2    |    |
| Equityin income ofinvestee                              |  |                      | 3.3    |                    |  |   | 2.4    |     |  |   | 3.3    |     |  |   | 2.7    |    |
| Netincome(loss)                                         |  |                      | (9.2   | )%                 |  |   | (2.4   | )%  |  |   | (3.0   | )%  |  |   | 2.4    | %  |
|                                                         |

Comparisonof the Three Months Ended June 30, 2005 and the Three Months Ended June30, 2004.

Total Revenues

Total revenues for the threemonths ended June 30, 2005 were $14.2 million, which represented a3.0% or $0.4 million decrease over total revenues of $14.6million for the three months ended June 30, 2004. The decrease wasprincipally due to the Ormesa project, whose revenues for the threemonths ended June 30, 2005, amounted to $7.2 million, as compared with$8.0 million for the three months ended June 30, 2004, due to a loweravailability of the project's well field as described under"Total Cost of Revenues". Such decrease wasoffset, partially, by an increase in the Brady project's revenuesas a result of higher energy rates and additional revenues from thesale of the project's renewable energy credits.

TotalCost of Revenues

Total cost of revenues for the three monthsended June 30, 2005 was $12.8 million, which represented a 15.6%increase over total cost of revenues of $11.0 million for the threemonths ended June 30, 2004. The increase was principally due to asignificant increase in the geothermal field costs within the Ormesaproject due to a higher-than-average rate of failure of productionpumps and wells. This failure required us to replace a relatively largenumber of pumps during the quarter and to abandon one productionwell.

General and Administrative Expenses

General andadministrative expenses for the three months ended June 30, 2005 were$0.4 million compared to $0.2 million for the three months ended June30, 2004. Such increase of $0.2 million is principally due to anincrease in professional services fees as a result of our newcompliance obligations following the filing of a Registration Statementon Form S-4.

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Interest Expense

Interest expensefor the three months ended June 30, 2005 was $ 4.1 million, compared to$4.6 million for the three months ended June 30, 2004. The decrease wasprimarily due to: (i) a decrease in interest expense on the Ormesa loanas a result of repayment on December 31, 2004 which resulted in nointerest expense for that item for the three months ended June 30,2005, compared to $0.4 million for the three months ended June 30,2004, and (ii) a decrease in interest expense as a result ofcapitalization of interest expenses of the Galena project in the amountof $0.2 million.

Income Taxes

Income tax benefit forthe three months ended June 30, 2005 was $1.1 million as compared withincome tax benefit of $0.4 million for the three months ended June 30,2004. The effective tax rates for each of the three months ended June30, 2005 and 2004 were 38%.

Equity in Income ofInvestee

Equity in income of investee was $0.5 million for thethree months ended June 30, 2005 as compared with $0.4 million for thethree months ended June 30, 2004, representing our 50% ownershipinterest in the income of Mammoth-Pacific L.P.

Net Loss

Net loss was $1.3 million for the three months ended June 30, 2005compared with net loss of $0.4 million for the three months ended June30, 2004. The net increase of $0.9 million in net loss was primarily asa result of the following: (i) a decrease of $2.3 million in operatingincome resulting, primarily, from the lower gross margins, (ii) adecrease of $0.6 million in net interest expenses, (iii) an increase of$0.7 million in income tax benefit resulting from the increase in lossbefore income taxes, and (iv) increase in equity income of investee of$0.1 million.

Comparison of the Six Months Ended June 30, 2005and the Six Months Ended June 30, 2004.

Total Revenues

Total revenues for the six months ended June 30, 2005 were $28.4million, which represented a 5.6% or $1.5 million increase overtotal revenues of $26.9 million for the six months ended June 30, 2004.The increase was principally due to the acquisition of the Steamboat2/3 project on February 11, 2004, whose revenues for the six monthsended June 30, 2005 amounted to $9.0 million, as compared with $6.9million for the six months ended June 30, 2004. The increase was offsetby a $1.1 million decrease in the Ormesa project's revenues forthe six months ended June 30, 2005, which amounted to $13.3 million, ascompared with $14.4 million for the six months ended June 30, 2004.Such decrease was due to a lower availability of the well field in theOrmesa project, as described above.

Total Cost of Revenues

Total cost of revenues for the six months ended June 30, 2005 were$22.5 million, which represented a 19.4% increase over totalcost of revenues of $18.8 million for the six months ended June 30,2004. The increase was principally due to the acquisition of theSteamboat 2/3 project, as cost of revenues for the six months endedJune 30, 2005 included $5.5 million of expenses related to Steamboat2/3 project, while for the six months ended June 30, 2004, $3.8 millionfrom the Steamboat 2/3 project were included. The remaining $2.0million increase in cost of revenues for the six months ended June 30,2005 was mainly due to additional costs relating to field maintenancein the Ormesa project. Gross margins were 20.9% for the sixmonths ended June 30, 2005 compared to 30.1% for the six monthsended June 30, 2004. Such decrease was principally due to a significantincrease in the geothermal field costs within the Ormesa project due toa higher-than-average rate of failure of production pumps and wells.This failure required us to replace a relatively large number of pumpsduring the first half of 2005 and to abandon one production well. Wehave also experienced a decrease in the gross margin of the Steamboat2/3 project, which resulted from the timing of costs incurred in thefirst quarter of 2005.

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General and Administrative Expenses

General and administrative expenses for the six months ended June30, 2005 were $0.9 million compared to $0.6 million for the six monthsended June 30, 2004. The increase of $0.3 million is due to theincreased general and administrative activity due to the acquisition ofthe Steamboat 2/3 project on February 11, 2004 and due to an increasein professional services fees as a result of our new complianceobligations following the filing of a Registration Statement on FormS-4.

Interest Expense

Interest expense for the sixmonths ended June 30, 2005 was $8.2 million, compared to $7.8 millionfor the six months ended June 30, 2004. The increase was primarily dueto a $1.9 million increase in the interest expense on the SeniorSecured Notes, which was $7.9 million for the six months ended June 30,2005 compared to $6.0 million for the period from February 13, 2004 toJune 30, 2004, and was offset by: (i) a decrease of $0.4 million ininterest expense on the note payable to our parent to $0.2 million forthe six months ended June 30, 2005, from $0.6 million for the sixmonths ended June 30, 2004, (ii) a decrease in the interest expense onthe Ormesa loan as a result of repayment on December 31, 2004 thatresulted in no interest expense for that item for the six months endedJune 30, 2005, compared to $0.7 million for the six months ended June30, 2004, and (iii) a decrease in interest expense as a result ofcapitalization of interest expenses on the Galena and Brady projects,in the amount of $0.3 million.

Income Taxes

Income taxbenefit for the six months ended June 30, 2005 was $1.1 as comparedwith income tax benefit of $0.1 million for the six months ended June30, 2004. The effective tax rates for each of the six months ended June30, 2005 and 2004 were 38%.

Equity in Income ofInvestee

Equity in income of investee was $0.9 million for thesix months ended June 30, 2005 as compared with $0.7 million for thesix months ended June 30, 2004, representing our 50% ownershipinterest in the income of Mammoth-Pacific L.P.

Net Income(Loss)

Net loss was $0.9 million for the six months ended June30, 2005 compared with net income of $0.6 million for the six monthsended June 30, 2004. The net decrease of $1.5 million in net incomewas, primarily, the result of the following: (i) a decrease of $2.4million in operating income resulting, primarily, from the lower grossmargins, (ii) an increase of $0.2 million in interest income, (iii) anet increase of $0.5 million in net interest expenses, (iv) an increaseof $1.0 million in income tax benefit resulting from the increase inloss before income taxes, and (v) an increase of $0.2 million in equityincome of investee.

Liquidity and Capital Resources

Our principal sources of liquidity are derived from a combination ofinternally generated cash and our parent's subordinated loans,supplemented with third party debt.

Our estimated uses of fundsare for planned capital expenditures, described below, and for therepayment of the debt services related to the issuance of the SeniorSecured Notes.

On December 1, 2003, we entered into a loanagreement with Ormat Nevada pursuant to which we may borrow up to $55million from time to time. The loan is due in 2021 and is payable onlyfrom available 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 (4.57% and 4.68% at June 30,2005 and December 31, 2004, respectively), is added to the principaland is also due in 2021 from available cash flow.

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Our third-party debt is composed ofproject finance debt for the purpose of refinancing projects or for theacquisition of our projects. On February 13, 2004, we issued the SeniorSecured Notes in a capital markets offering subject to Rule 144A andRegulation S of the Securities Act of 1933, as amended, for the purposeof refinancing the acquisition cost of the Brady, Ormesa and Steamboat1/1A projects, and the financing of the acquisition cost of theSteamboat 2/3 project and Mammoth project. On March 16, 2005, weexchanged these unregistered notes for Senior Secured Notes withsubstantially identical terms that have been registered under theSecurities Act of 1933, as amended. As of June 30, 2005, there was$186.5 million of Senior Secured Notes outstanding. The Senior SecuredNotes are collateralized by substantially all of our assets and theassets of our subsidiaries and is jointly and severally fully andunconditionally guaranteed by all of our wholly owned subsidiaries. Thecollateral securing the Senior Secured Notes consists of (with certainexceptions) all of our and our wholly owned subsidiaries' realand personal property, contractual rights, revenues and bank accounts,intercompany notes and insurance policies.

On December 31, 2004,Ormesa LLC, our subsidiary, repaid in its entirety a senior securedloan in the amount of $13.1 million under its credit facility withUnited Capital, a division of Hudson United Bank. The loan was securedby a first priority lien on the Ormesa project and this lien wasreleased contemporaneously with the repayment of the loan. Inaccordance with the terms of our indenture governing the Senior SecuredNotes, immediately upon the repayment of the loan, Ormesa executed aguarantee of the Senior Secured Notes and granted a first priority lienon the Ormesa project and all other Ormesa assets in favor of thecollateral agent for the benefit of the holders of the Senior SecuredNotes. We repaid the loan with amounts set aside in a cash escrowaccount that was funded from proceeds from the sale of the SeniorSecured Notes.

Our management believes that the aboveprojects' generated cash will be sufficient to address ourliquidity. Additionally, as of June 30, 2005, we had an outstandingbalance of $27.5 million from our subordinated loan with Ormat Nevada,out of a total of $55 million, as described above. Therefore, we mayborrow, if required, up to $27.5 million from Ormat Nevada in order toaddress other investment requirements.

Historical CashFlow

The following table set forth the components of our cashflows for the relevant periods indicated:

|                                          |  |                         |        |         |  |        |          |         |  |  |  |  |  |  |
|------------------------------------------|--|-------------------------|--------|---------|--|--------|----------|---------|--|--|--|--|--|--|
|                                     |  | SixMonths Ended June30, |        |
|                                     |  | 2005                    |        | 2004    |  |
|                                     |  | (inthousands)           |        |
| Net cash provided by operatingactivities |  | $                       | 2,959  |    |  | $      | 2,699    |    |  |
| Net cashused in investingactivities      |  |                    | (3,225 | )  |  |   | (124,370 | )  |  |
| Netcash provided by financingactivities  |  |                    | 266    |    |  |   | 129,376  |    |  |
|                                          |

Forthe Six Months ended June 30, 2005

Net cash provided byoperating activities for the six months ended June 30, 2005 was $3.0million as compared with $2.7 million for the six months ended June 30,2004. Such increase was primarily due to: (i) a decrease of $1.3million in accounts payable and accrued expenses (including thosepayable to Parent) for the six months ended June 30, 2005 as comparedto a decrease of $4.0 million for the six months ended June 30, 2004,and (ii) an increase of $0.5 million in depreciation and amortizationas a result of the acquisition of Steamboat 2/3 in February 2004. Theincrease was offset by (i) a decrease of $1.6 million in net income asa result of the decrease of $2.5 million in operating income, and (ii)an increase of $1.0 million in deferred income tax provision.

Net cash used in investing activities for the six months ended June30, 2005 was $3.2 million as compared with $124.4 million for the sixmonths ended June 30, 2004. Investing activities in the six monthsended June 30, 2005 reflect an increase of $4.4 million in restrictedcash that will be used for the semi-annual principal and interestpayment scheduled for December 30, 2005 related to the Senior SecuredNotes, offset by a distribution of $1.0 million from Mammoth Pacific.Investing activities for 

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the six months ended June 30, 2004 reflectthe use of funds for the acquisition of the Steamboat 2/3 project for atotal of $74.4 million, a deposit payment of $2.3 million for the useof the Meyberg property and a net increase in restricted cash of $47.2million originated from the proceeds from the issuance of the SeniorSecured Notes in February 2004, which were earmarked for capitalexpenditure and debt service reserve account established pursuant tothe terms of our Senior Secured Notes.

Net cash provided byfinancing activities for the six months ended June 30, 2005 was $0.3million as compared with net cash provided by financing activities forthe six months ended June 30, 2004 of $129.4 million. The principalelement of the cash flow from financing activities for the six monthsended June 30, 2005 was the net $3.7 million proceeds from a long-termsubordinated loan from Ormat Nevada compared to net repayment of $51.1million for the six months ended June 30, 2004 and a repayment of $3.0million of the Senior Secured Notes. The cash flow from financingactivities in the six months ended June 30, 2004 also includes theissuance of the Senior Secured Notes amounting to $190 million, lessdebt issuance costs of $8.9 million.

Capital Expenditures

Our capital expenditures primarily relate to the enhancement ofexisting power plants and the construction of new power plants.

Mammoth Project.    We commenced drilling activities at theMammoth project under an approximately $8.3 million enhancement program($4.15 million to be funded by us), which we believe will result in anincrease in the output of the project by 4 MW. Such enhancement programis expected to be completed in 2006. A substantial portion of the fundsrequired for such enhancement have been earmarked from theproject's fund by us and our partners in such program.

Ormesa Project.    In connection with the Ormesa project,we have drilled two additional wells, plan to add additional OrmatEnergy Converter ("OEC") units and replaceexisting units in order to increase the output of the project by anestimated 10 MW. We estimate that the costs of such enhancements shallbe up to $40.3 million and will be funded by us from internallygenerated cash or other available corporate resources. As of June 30,2005, approximately $4.3 million in costs had been incurred related tothe enhancement program. On May 6, 2005, we completed negotiations andwe expect to enter into definitive agreement in the coming few weeksfor a new 25-year power purchase agreement with SCPPA for the purchaseof 10 MW of energy for a fixed price $57.50/MWh, which will escalateannually at a rate of 1.5%. Delivery of energy under this powerpurchase agreement is expected to begin in the fourth quarter of2006.

Galena Project.    We commenced construction ofthe Galena project during the third quarter of 2004, began siteconstruction in the first quarter of 2005 and expect that theconstruction will be complete and that the Galena project will achievecommercial operations in the fourth quarter of 2005. Construction costsof $26.1 million are being funded from the proceeds of the offering ofthe Senior Secured Notes, $8.9 million of which are currently depositedin an escrow account, and will be released in accordance with theprogress of the construction phase for such enhancement. Additionalcosts of construction in the amount of $2.0 million will be funded outof available cash flow. As of June 30, 2005, approximately $16.7million in costs had been incurred related to the Galena project. Basedon the final design of the project, we plan to increase the entiresteamboat complex's output by a total increase of 13 MW.

We do not anticipate any other material capital expenditures in thenear term, other than ordinary maintenance requirements.

Exposure to Market Risks

One market risk to which powerplants are typically exposed is the volatility of electricity prices.We do not have significant exposure to such market risk principallybecause our long-term power purchase agreements have fixed orescalating rate provisions that limit our risk of exposure to changesin electricity prices. However, beginning in May 2007, the energypayments under the Ormesa and Mammoth project power purchase agreementswill be determined by reference to the purchaser's 

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short-run avoided costs. The energy pricesof Steamboat 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 December 31, 2004, letters of credit amounting to$10.8 million were issued and outstanding under this agreement, whichwere used to replace cash on deposit as reserve funds that were held asa pledge against the Senior Secured Notes. As of June 30, 2005, suchletters of credit have not been renewed by the Parent.

Concentration of Credit Risk

Our credit risk is currentlyconcentrated with two major customers, Sierra Pacific Power Company andSouthern California Edison Company.

Southern California EdisonCompany accounted for 51% and 47% of our revenues for thethree and six-month periods ended June 30, 2005 compared to 55%and 53% of our revenues for the three and six-month periodsended June 30, 2004. Southern California Edison Company is also thesole purchase agreement counterparty and revenue source for the Mammothproject. Based on publicly available information, Southern CaliforniaEdison Company's issuer rating is BBB+ (stable outlook) byS&P and Baa1 (stable outlook) by Moody's.

SierraPacific Power Company accounted for 49 % and 53% of ourrevenues for the three and six-month periods ended June 30, 2005compared to 45% and 47% of our revenues for the three andsix-month periods ended June 30, 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, such failure would have a material adverseimpact on our financial condition and results of operations.

Risk Factors

A comprehensive discussion of our risk factorsis included 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.

|               |                                                           |
|---------------|-----------------------------------------------------------|
| 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 of disclosure controls and procedures

Ourmanagement, with the participation of our Chief Executive Officer andChief Financial Officer, evaluated the effectiveness of our disclosurecontrols and procedures pursuant to Rule 13a-15 

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under the Securities and Exchange Act of1934, as amended, as of the end of the period covered by this quarterlyreport. The evaluation included certain control areas in which we havemade, and are continuing to make, changes to improve and enhancecontrols. Based on that evaluation as of June 30, 2005, our Presidentand Chief Financial Officer have concluded that our disclosure controlsand procedures (as defined in Rules 13a-15(e) and 15d-15(e) under theSecurities Exchange Act of 1934, as amended) were effective to ensurethat the information required to be disclosed by us in this quarterlyreport on Form 10-Q was recorded, processed, summarized and reportedaccurately and within the time periods specified within the SEC'srules and instructions for Form 10-Q. In designing and evaluating thedisclosure controls and procedures, management recognized that anycontrols and procedures, no matter how well designed and operated, canprovide only reasonable assurance of achieving the desired controlobjectives, and management is required to apply its judgment inevaluating the cost benefit relationship of possible controls andprocedures.

b.    Changes in internal controls over financialreporting

There were no changes in our internal controls overfinancial reporting in the first six months of 2005 that havematerially affected or are reasonably likely to materially affect ourinternal controls over financial reporting.

We are furtherenhancing our documentation and analyzing our system of internalcontrols. We have initially identified areas of our internal controlsrequiring improvement, and are in the process of designing enhancedprocesses and controls to address issues identified through thisreview. Areas of improvement include enhancing and streamlining ourfinancial reporting procedures. We plan to continue this initiative, aswell as prepare for our first management report on internal controlover financial reporting, as required by Section 404 of theSarbanes-Oxley Act of 2002, on December 31,2005.

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PART II

OTHER INFORMATION

ITEM 1.    LEGALPROCEEDINGS

During the first six months of fiscal year 2005,there were no material developments in any legal proceedings to whichwe are a party 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 UPON SENIORSECURITIES

None.

ITEM 4.    SUBMISSION OF MATTERS TOA VOTE OF SECURITY HOLDERS

There were no matters submitted to avote of security holders during the second quarter of fiscal year2005.

ITEM 5.    OTHER INFORMATION

None.

ITEM6.    EXHIBITS

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1           |  | Indenture,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 Exhibit10.1.7 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                      |
| 4.2           |  | Form of Exchange Note(included in Exhibit 4.1).                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.3           |  | FirstSupplemental Indenture, dated as of May 14, 2004, among Ormat FundingCorp., Brady Power Partners, Steamboat Development Corp., SteamboatGeothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC,Ormesa LLC, and Union Bank of California, N.A., incorporated byreference to Exhibit 10.1.8 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. |
|               |

28

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |  |  |  |
|---------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.4           |  | Second SupplementalIndenture, dated as of December 21, 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 4.4 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.               |
| 4.5           |  | Guarantee, dated asof February 13, 2004, by ORNI 1 LLC in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.5 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities 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.                     |
| 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. |
|               |

29

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.14          |  | Registration RightsAgreement, dated as of February 13, 2004, by and among Ormat FundingCorp, Brady Power Partners, Steamboat Geothermal LLC, SteamboatDevelopment Corp, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC,and Lehman Brothers Inc., incorporated by reference to Exhibit 4.14 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities 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.                                                                                                                                                           |
| 4.24          |  | ThirdSupplemental Indenture, dated as of December 31, 2004, among OrmesaLLC, Ormat Funding Corp., Brady Power Partners, Steamboat DevelopmentCorp., Steamboat Geothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2LLC, ORNI 7 LLC, and Union Bank of California, N.A., incorporated byreference to Exhibit 4.24 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. |
|               |

30

----

|               |  |                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                |
| 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                                                                                                                                                                                                                                                                                                                                         |
| 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.                |
| 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.               |
|               |

31

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                         |
| 10.3.7        |  | Amended and RestatedPower Purchase and Sales Agreement, dated as of December 2, 1986, byand between 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.                                      |
| 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. |
|               |

32

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|               |  |                                                                                                                                                                                                                                                                                                                                                                             |  |  |  |  |
|---------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                 |
| 10.3.18       |  | Energy ServicesAgreement, dated as of February 2003, by and between ImperialIrrigation District and Ormesa, LLC, incorporated by reference toExhibit 10.3.43 to Ormat Technologies, Inc. Registration Statement onAmendment No. 1 Form S-1 (File No. 333-117527) to the Securities andExchange Commission on September 28,2004.                                             |
| 10.3.19       |  | Agreement for the Purchase andSale of Electricity, dated as of November 18, 1983, by and betweenGeothermal Development Associates and Sierra Pacific Power Company,incorporated by reference to Exhibit 10.3.19 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. |
| 10.3.20       |  | 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.                          |
| 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.                                              |
|               |

33

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 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.                                                                                                                       |
| 10.3.29       |  | IID- Edison Transmission Service Agreement for Alternative Resources,dated, September 26, 1985, by and between Imperial Irrigation Districtand Southern 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        |  | OrmesaBLM License for Electric Power Plant Site CA 24678, incorporated byreference to Exhibit 10.4.2 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.++                                                                                                                                                                                                    |
| 10.4.3        |  | Geothermal Resources Lease,dated as of November 18, 1983, by and between Sierra Pacific PowerCompany, as Lessor, and Geothermal Development Associates, as Lessee,and amended by the amendments dated January 7, 1985, October 29, 1988,and October 2, 1989, incorporated by reference to Exhibit 10.4.6 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.* |
| 10.4.4        |  | 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.                                                                                                                                           |
|               |

34

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| 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.                                                                                                                                                           |
|               |

35

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|               |  |                                                                                                                                                                                                                                                                                                                                                               |  |  |  |  |
|---------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| 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.                                       |
|               |

36

----

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

37

----

|               |  |                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                  |
| 10.10.1       |  | Amended andRestated Agreement of Limited Partnership of Mammoth-Pacific LP, datedas of January 26, 1990, incorporated by reference to Exhibit 10.10.1 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                           |
| 10.10.2       |  | Amendment No. 1 to Amend edand 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. |
| 13.1          |  | Form 10-K for the year endedDecember 31, 2004, incorporated by reference to Ormat FundingCorporation Annual Report on Form 10-K (File No. 333-121655) to theSecurities and Exchange Commissions on March 29,2005.                                                                                                                                            |
| 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 exhibithave been omitted and filed separately under an application forconfidential treatment which was granted by the Securities and ExchangeCommission on January 24, 2005 in connection with Ormat Funding Corp.Regulation Statements on Form S-4 (File No. 333-121655).

† We have entered into other BLM geothermal resourcesleases that are substantially similar in terms with this exhibit. Anydeviation in terms with this exhibit has been described in Exhibit99.1.

†† We have entered into other BLMsite leases that are substantially similar in terms with this exhibit.Any deviation in terms with this exhibit has been described in Exhibit99.2.

38

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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.

|                      |  |                    |  |                                                     |  |  |  |  |  |  |
|----------------------|--|--------------------|--|-----------------------------------------------------|--|--|--|--|--|--|
|                 |  | ORMATFUNDING CORP. |
| Date: August11, 2005 |  | By:                |  | /s/ CONNIE STECHMAN                                 |
|                 |  |               |  | Name: Connie Stechman Title: ChiefFinancial Officer |
|                      |

39

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EXHIBITINDEX

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1           |  | Indenture,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 Exhibit10.1.7 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                      |
| 4.2           |  | Form of Exchange Note(included in Exhibit 4.1).                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.3           |  | FirstSupplemental Indenture, dated as of May 14, 2004, among Ormat FundingCorp., Brady Power Partners, Steamboat Development Corp., SteamboatGeothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC,Ormesa LLC, and Union Bank of California, N.A., incorporated byreference to Exhibit 10.1.8 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. |
| 4.4           |  | Second Supplemental Indenture,dated as of December 21, 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 Exhibit4.4 to Ormat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                      |
| 4.5           |  | 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.                                                                                                                                                                               |
|               |

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.11          |  | Guarantee, dated as ofFebruary 13, 2004, by OrMammoth Inc. in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.11 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities 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.                                                                                                                                                |
| 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.                                                                                                                                        |
|               |

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.21          |  | Pledge and SecurityAgreement, dated as of February 13, 2004, by and between ORNI 1 LLC andUnion Bank of California, N.A., incorporated by reference to Exhibit4.21 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                           |
| 4.22          |  | Pledge and SecurityAgreement, dated as of February 13, 2004, by and between ORNI 2 LLC andUnion Bank of California, N.A., incorporated by reference to Exhibit4.22 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                           |
| 4.23          |  | Pledge and SecurityAgreement, dated as of February 13, 2004, by and between ORNI 7 LLC andUnion Bank of California, N.A., incorporated by reference to Exhibit4.23 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 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 October22, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|               |

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                             |
| 10.3.1        |  | Power PurchaseContract, dated as of July 18, 1984, between Southern California EdisonCompany and Republic Geothermal, Inc., incorporated by reference toExhibit 10.3.1 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.                                                    |
| 10.3.2        |  | Amendment No. 1, to the PowerPurchase Contract, dated as of December 23, 1988, between SouthernCalifornia Edison Company and Ormesa Geothermal, incorporated byreference 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.                                          |
| 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.                             |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                         |
| 10.3.11       |  | Amendment No. 2 toPower Purchase 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.         |
| 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.               |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|---------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3.21       |  | Long-Term Agreementfor the Purchase and Sale of Electricity, dated as of October 29, 1988,by and between 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.                                            |
| 10.3.29       |  | IID- Edison Transmission Service Agreement for Alternative Resources,dated, September 26, 1985, by and between Imperial Irrigation Districtand Southern 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.                                                           |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.3.31       |  | Long Term Agreementfor the Purchase and Sale of Electricity, dated as of October 5, 1990,by and between Nevada Geothermal Power Partners and Sierra PacificPower Company, incorporated by reference to Exhibit 10.3.31 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities 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.*                  |
| 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.*        |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4.7        |  | Second Amendment toGeothermal Resources Lease, dated as of June 25, 1993, by and betweenBernice Guisti, Judith Harvey and Karen Thompson, Trustees andBeneficiaries of the Guisti Trust, as Lessor and Far West Capital, Inc.and its Assignee, Steamboat Development Corp., as Lessee, incorporatedby reference to Exhibit 10.4.28 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. |
| 10.4.8        |  | 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.                                                                                                                                               |
| 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.                                                                                                                                                  |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                              |
| 10.5.2        |  | Operation andMaintenance Agreement, dated as of April 15, 2002, by and betweenOrmesa LLC and Ormat Nevada, Inc., incorporated by reference to Exhibit10.5.2 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 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.                                                  |
| 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. |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |  |  |  |
|---------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.8.4        |  | Purchase and SaleAgreement, dated as of June 1, 2004, by and between The BurlingtonNorthern and Santa Fe Railway Company and Brady Power Partners,incorporated by reference to Exhibit 10.8.4 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange 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.                                                                                                                                                                    |
| 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.                                                                                                                                                |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                  |
| 10.10.3       |  | Authorization,Direction and Termination Agreement, dated as of October 16, 2004, byand among BNY Western Trust Company, SRT, Inc., and SteamboatDevelopment Corp., incorporated by reference to Exhibit 10.10.3 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004. |
| 13.1          |  | Form 10-K for the year endedDecember 31, 2004, incorporated by reference to Ormat FundingCorporation Annual Report on Form 10-K (File No. 333-121655) to theSecurities and Exchange Commissions on March 29,2005.                                                                                                                                            |
| 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 has 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 has been described in Exhibit99.2.

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