The mandate letter provides for IFC to lead and arrange a syndicate of lenders to finance up to $42 million for the construction of a binary unit which will add approximately 10 MW net of additional capacity to the existing 72 MW 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 in late 2012, with an expected initial operation date in the first quarter 2014. At that time, the binary unit is expected to contribute approximately $8 million to $10 million of annual revenue to the company, pending final negotiations of the power sales agreement. No additional production or injection wells are required to construct and operate the binary unit at its full capacity.
In the binary process, the geothermal fluid heats another liquid, such as isobutane or other refrigerant (the “working fluid”), that vaporizes at a lower temperature than water. The two fluids are kept completely separate through the use of heat exchangers to transfer heat energy from the geothermal fluid to the working fluid. When heated, the working fluid vaporizes into a “gas,” which is then used to turn the turbine-generator.
“We are very pleased with the successful outcome of negotiations with IFC for the binary unit Mandate Letter,” said Shuman Moore, CEO of Ram Power. “The continued support of the project from IFC and our other project lenders signifies that the challenges of the past are behind us, and that the Company will continue to execute its strategic plan to complete development of this very important project for Nicaragua and the Company.”
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