IFC, as implementing entity of the IDA Private Sector Window Blended Finance Facility and for its own account under IFC’s Concessional Capital Window, is expected to provide a concessional subordinated loan of up to US$11.03 million (“blended concessional finance co-investments”). The project requires long term financing to provide sufficient time for execution and ramp up. However, high country and project specific 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. By supporting the project, IDA PSW and CCW would help in increasing the supply of LPG in the market leading to health and climate benefits. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 3% of the total project cost. The total cost of the project is US$64 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. 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, IFC’s blended finance approach and governance, and historical information on estimated subsidy levels in IFC’s blended finance portfolio can also be found at: www.ifc.org/blendedfinance

The most significant project-level outcomes include improved access to cleaner cooking fuel alternatives, as well as the generation of economy-wide value added and employment. Beyond the Project, IFC anticipates the potential for this project to promote greater competitiveness through expanded private sector participation and the entry of a multinational LPG company into markets with very limited supply of LPG.

IFC’s involvement with the support of IDA PSW LCF is expected to contribute both financially and non-financially. Financial additionality is delivered through the provision of extended-tenor funding that remains largely unavailable in the domestic banking sector. Non-financial additionality comprises risk mitigation via the equity stake in DRC project, knowledge, innovation, capacity building, and standard-setting, including guidance to strengthen the Company’s capacity to manage E&S risks.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Direct Employment (#) Operations And Maintenance	individuals	DRC	Not Available	Not Available	Not Available
Direct Employment (#) Operations And Maintenance	individuals	Zambia	Not Available	Not Available	Not Available
Direct Employment (#) Operations And Maintenance	individuals	SA	Not Available	Not Available	Not Available
Gross Value Added	USD M	Zambia	Not Available	Not Available	Not Available
Gross Value Added	USD M	DRC	Not Available	Not Available	Not Available
Gross Value Added	USD M	SA	Not Available	Not Available	Not Available
Direct Employment (#) Operations And Maintenance	individuals		Not Available	Not Available	Not Available

This is a Category B project according to IFC’s Policy on E&S Sustainability (2012). This reflects IFC’s assessment that the Project is expected to result in limited adverse E&S risks and impacts that are site specific, largely reversible, and manageable through the application of Good International Industry Practice (GIIP).

Key potential E&S risks associated with the Project include: (a) the Group’s capacity to adequately and consistently identify and manage E&S risks across multiple countries and project stages, including E&S impact studies for the DRC green fields, E&S staff competence, E&S management systems robustness, stakeholder engagement processes, and the availability and consistency of worker and community grievance mechanisms across Project countries and contractors; (b) occupational health and safety (OHS); (c) process safety, notably fire and explosion hazards; hazardous materials handling and storage; (d) labor and working conditions; and (e) community health and safety risks associated with LPG transportation and distribution, including traffic safety, emergency preparedness along transport routes, and management of third-party logistics providers. These risks are considered manageable through the implementation of appropriate management systems, operational controls, and targeted measures reflected in the Environmental and Social Action Plan (ESAP).

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