Ram Power Corporation has signed an agreement with the International Finance Corporation (IFC) for the financing of a binary unit at the company's San Jacinto-Tizate project in Leon, Nicaragua.

The agreement allows IFC to lead and arrange a syndicate of lenders to finance up to $42m for the construction of a binary unit which will add approximately 10MW net of additional capacity to the existing 72MW net expansion at the San Jacinto-Tizate Project site.

IFC led a syndicate of seven international development banks for the financing of Phase II of the Project which is scheduled for completion in December 2012.

The binary unit is planned to begin construction at the end of 2012, with an expected initial operation date in the first quarter 2014, contributing $8 to $10m of annual revenue to the company.

Ram Power said no additional production or injection wells are required to construct and operate the binary unit at its full capacity.