CHICAGO -- Dravo Corp.'s Dravo Lime Co. said it has arranged for $50 million of project financing from Bank of America.

Dravo said construction and term financing was committed by Prudential Power Funding Associates.

The Bank of America financing will be used to expand Dravo Lime's 600,000-ton-a-year Black River lime production facility in Carntown, Ky., by an additional 700,000 tons a year.

Dravo said the expansion will give Dravo Lime the capacity to supply lime needed by Ohio Power Co., a unit of American Electric Power, over the life of a 15-year lime supply agreement, which it received in 1993.

A spokesman for Dravo said construction on the plant expansion began in December 1993 and is expected to be completed during the first quarter of 1995.

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