CEO Isaac Angel: "The second element our business plan is organic growth and M&A, please turn to slide 26. We plan to add 215 MW to 225 MW by the end of 2019 by bringing new power plants online and expanding existing plants.
In Sarulla, Indonesia, the first phase with 110 MW capacity is currently under testing and expected to commence operation in March 2017. To remind you Ormat’s share in this power plant is 14 MW. For the second phase power plant engineering and procurement has been substantially completed. Five construction is in progress and all of the major generating units including those to be supplied by Ormat were delivered. For the third phase; engineering, procurement and construction work at the sight are in progress. Manufacturing of equipment to be supplied by Ormat is underway at the plant.
Drilling for the second and third phases is still going on and the project has achieved today based on preliminary estimate approximately 80% of the required production capacity and over 85% of the required injection capacity.
In January 2016, we announced that we commenced construction of the 35 megawatt Platanares geothermal project in Honduras. This project, which we expect to reach commercial operation by the end of 2017 will sell its power mainly under 30 year PPA with the national utility of Honduras. We expect the project to generate average annual revenues of approximately $23 million. We also initiated construction of Tungsten project in Nevada. We expect Tungsten to generate 24 MW when it comes online at the end of 2017.
Dixie Meadows is at earlier stage, drilling is ongoing and this project is expected to generate approximately 15 MW to 20 MW by the end of 2018. We believe that both Dixie and Tungsten may qualify for the production tax rate. In Kenya, we started the construction of a 10 MW enhancement that will increase Olkaria III complex to 150 MW during 2018.
In Guadeloupe we are planning to increase the capacity of Bouillante by an additional 5 MW to 10 MW that will be added by the end of 2018 or early 2019. Another exciting progress is done in McGinness Hills complex in Nevada where we are developing a third phase to be added to the current 86 MW complex. We expect the third phase to be 45 MW. We started drilling activities and we are in advanced stage of securing a PPA with California offtaker. We believe our phase development approach will enable us to benefit from economies of scale for the construction and operation of the company. On completion McGinness Hills complex will be our largest complex in the U.S. with the generating capacity 120 MW."