IFC as implementing entity of the IDA20 Private Sector Window Blended Finance Facility is expected to provide up to $10 million in the form of a subordinated loan (“blended concessional finance co-investment”). The use of a blended concessional finance co-investment will support the expansion of bottled water business in Liberia and in Sierra Leone, an FCS and low-income IDA countries, by Afropa, a leading beverage company in Liberia. The Project supports domestic value addition and employment generation and is expected to have positive climate impact. This impact would otherwise not be achievable due to participatory constraints, including sizeable business expansion risks and low security coverage. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 5% of the total project cost of $33 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 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

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

IFC expects the Project to enhance the economy through job creation and added value from its expanded operations. This increased capacity will directly address Sierra Leone and Liberia's pressing need for safe and clean drinking water. Moreover, the Project will have environment impacts in terms of increased water and energy use efficiency. Beyond the Project-level impact, IFC anticipates the Project will contribute to increasing the competitiveness of the bottled water market by exerting competitive pressures on other bottled water producers in Liberia and Sierra Leone to optimize their cost structures and improve the distribution model and operation efficiency.

IFC is providing both financial and non-financial additionality. Financial additionality stems from the provision of longer-term financing that supports the company’s capital-intensive expansion plans. Non-financial additionality comes from IFC’s support to align the Company’s operations with IFC’s Performance Standards.

This is a Category B project according to IFC's 2012 Policy on Environment and Social (E&S) Sustainability. The proposed project will have limited adverse E&S impacts that are few, site specific, and readily addressed through good international industry practices (GIIP), including those reflected in the E&S Action Plan (ESAP) attached to this document. Key E&S risks and issues for this investment are (i) Afropa’s capacity to develop and implement plant-level E&S/food safety management systems (ESMS/FSMS); (ii) capacity and competency of its ESMS/FSMS functions; (iii) fair labor and safe working conditions, including terms of employment and OHS working conditions for direct employees and contractors, including Gender-based Violence (GBV) risks; (iv) emergency preparedness and response plan, including life and fire safety (L&FS) at both facilities; (v) energy/water usage and efficiency; (vi) pollution prevention and control; (vii) traffic safety and use of security forces; (viii) community engagement and community grievance mechanisms.

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.