IFC as implementing entity of the IDA19 Private Sector Window Blended Finance Facility is expected to provide a first loss guarantee of up to US$1.58 million or 35% of the A loan provided for Tanzania, whichever is lower (the “blended concessional finance co-investment”), to de-risk IFC’s financing in Tanzania. The project requires long term financing for Tanzania to provide it with adequate time for construction and ramp up. However, the high project specific and country risks lead to a mismatch of risk and return, limiting the Project’s ability to secure the required long-term financing without any risk mitigation. Without the de-risking provided by IDA PSW, the project would either be significantly delayed or not move forward. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be approximately 3% of the total project cost. The total cost of the project is US$19.5 million. This estimate is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost and profit; or a negotiated price) and (ii) the “concessional price” being charged by the blended concessional finance co-investment. Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all of IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: www.ifc.org/blendedfinance

9.38 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	9.38
Equity

* These investment figures are indicative

The most significant expected project-level outcomes are (i) economywide effect, through value addition and job creation; and (ii) stakeholder effects through access to a broader mix of services available at service stations.

IFC is to provide (ii) long-term financing through one facility to be used in both Kenya and Tanzania; (ii) technical support for greening initiatives; and (iii) environmental, health and social best practices.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.