Nicaragua revokes Momotombo geothermal concession over money laundering charges
Momotombo plant in Nicaragua (source: Ormat)
Carlo Cariaga
15 Aug 2025
Nicaragua national agencies have cancelled the contract for exploitation of the Momotombo geothermal power plant, citing involvement in illegal operations.
Editors Note: We recognize the complicated history of politics in Nicaragua during the last several decades. As it is firmly outside of our field of expertise, we are refraining from making any comments on these political affairs. This report is based only on the facts published by Nicaraguan agencies in official documents, as well as developments directly relevant to the geothermal industry.
The Attorney General’s Office (PGJ) of Nicaragua has officially canceled the contract for the exploitation of geothermal resources at the Momotombo plant due to corruption and money laundering charges brought to the owners of the operating company, Momotombo Power Company.
The owners of the company, retired General Álvaro Baltodano Cantarero, and his son, Álvaro Baltodano Monroy, have been accused of creating 20 shell companies used for money laundering and tax evasion. According to the statement by PGJ, the evidence gathered by the National Police and the Attorney General’s Office revealed a direct connection between Momotombo Power Company and the shell companies. Such companies were established in foreign jurisdictions classified as tax havens by the Financial Action Task Force.
Moreover, the Ministry of Energy and Mines stated that the Momotombo Power Company failed to execute the works agreed upon the exploitation contract, which obligated the company to expand its operating capacity to 37-40 MW.
Exploitation of geothermal resources at the Momotombo site started in 1983 with the operations of the 35-MW Momotombo 1 power plant. This was followed in 1989 with a 35-MW Unit 2 power plant, and an 8-MW binary unit that came online later. Despite having an installed capacity of about 78 MWe, productivity of the Momotombo geothermal field has been unstable since 1987. As of 2013, the operating capacity at Momotombo was stated to be only 25 MWe.
In 2013, Ormat Techologies sold its stake of the Momotombo geothermal power project to the Momotombo Power Company. With the revocation of the contract, the assumption is that ownership and management of the existing geothermal power facilities revert to the national government via the state-owned Nicaraguan Electricity Company (ENEL).
The statement by the PGJ went to say that “the State of the Republic of Nicaragua reiterates its commitment to the defense of the National Heritage, transparency in public management, and the strengthening of the rule of law, ensuring that energy services continue to be provided without interruption and under lawful and responsible management.”
“Corrupt individuals who, using domestic or foreign corporate structures, disguise themselves as investments to cover up crimes will not be tolerated; accordingly, all those responsible, whether individuals or legal entities, domestic or foreign, will be prosecuted,” the statement further says.
Source: Que Pasa, Prensa Latina, and Ministerio Energia y Minas
