The World Bank is to finance construction of a geothermal power project in Guatemala through its International Finance Corporation (IFC) arm. The deal will involve a loan of up to $29.3 million, Dow Jones reports.

The IFC is to lend $12 million and make an equity investment of up to $42.3 million in Orzunil, a company created by the Israeli company Ormat Industries to build the plant. The IFC is also arranging a syndicated loan of up to $15 million.

The geothermal project, claimed to be the first in Guatemala, will sell power to the national electricity company.