IFC as implementing entity of the IDA Private Sector Window Blended Finance Facility is expected to provide a concessional subordinated loan of up to US$12 million (“blended concessional finance co-investment”). 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 would help vertical integration of a local company, domestic value addition, job creation and, potentially, GHG reduction. The level of concessionality (i e., “subsidy“) provided by the blended concessional finance co investment is estimated to be approximately 10.1% of the total project cost. The total cost of the project is US$36.5 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 IDA PSW loan. 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.

12.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.0
Equity

* These investment figures are indicative

The most significant expected project-level outcomes are: (i) economy-wide effects through substantial value-addition, direct and indirect employment generation, foreign exchange savings while enabling import substitution; and (ii) competitiveness through the localization of a segment of cement manufacturing in Sierra Leone, significantly reducing cement costs, thereby establishing a substantial competitive advantage. In addition to incorporating advanced grinding technology, the project is expected to generate significant demonstration effects by encouraging the adoption of renewable energy solutions, as a portion of IFC’s financing will be used for the installation of solar PV.

IFC, with the support of IDA PSW BFF, will (i) provide long-term financing that is not otherwise available in the market; (ii) provide guidance to upgrade the client’s environment, health, and safety practices in line with international best practices; (iii) assist with strengthening financial reporting and corporate governance practices; and (iv) propose interventions to address gender-based gaps identified.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Share of domestically produced final cement in the country	%		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Board Composition Women (#)	number		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Direct Employment (#) Operations And Maintenance	individuals		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Domestic Purchases ($M)	$M		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Female Direct Employment (#) Operations And Maintenance	individuals		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Gross Value Added	US$ Mn		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Number of Senior Management Positions	individuals		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Number of Women In Senior Management	individuals		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Payment To Government ($M)	USDMill		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment

 This is a Category B project as per IFC’s Policy on Environmental and Social Sustainability. Based on IFC’s review, the project is expected to have limited adverse E&S risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through established mitigation measures.

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.