IFC as implementing entity of the IDA20 PSW BFF is expected to provide up to US$30 million in the form of a subordinated loan (the “blended concessional finance co-investment”) to support the Project. Without the support of the blended finance co-investment, the Project will not go ahead due to multiple high risks faced by the project (macro, operational, limited security, among others). As a result, the Group would be unable to launch the first large-scale privately owned solar plant to provide power to commercial & industrial clients in Ghana. 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 US$140 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            

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

The Project will improve the affordability of electricity supply and reduce the greenhouse gas emissions associated with electricity generation in Tema FZ and Dawa IZ. In terms of market creation, the Project is expected to contribute to creating a competitive power sector by demonstrating the feasibility of meeting commercial and industrial consumers’ electricity needs in Ghana through solar power. Additionally, it has the potential to enhance productivity and competitiveness for industrial zone tenants by providing reliable and green electricity.

IFC's involvement with the support of IDA PSW is expected to contribute to both financial and non-financial additionality. Financial additionality is provided through (i) a financing structure with longer tenors and grace periods otherwise not available in local markets, particularly in the context of a challenging economic climate for Ghana and (ii) IFC mobilizing additional financing for the Project. Non-financial additionality is provided by (i) technical expertise and guidance within the renewable energy sector and (ii) environmental and social (“E&S”) expertise to improve performance and reduce E&S risks in accordance with the IFC Performance Standards.

This is a Category B project according to IFC's 2012 Policy on Environment and Social (E&S) Sustainability. The project will have limited adverse E&S impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures and good international industry practices (GIIPs). Key E&S risks and issues for this investment are related to: (a) the company’s and EPC contractor’s E&S capacity and systems to manage construction and operation of the project in line with IFC PS, including EPC's ESMS tailored to the project; (b) fair, safe and healthy working conditions in line with PS2 requirements; (c) supply chain risks for solar panels; (d) contractors’/subcontractor E&S management for construction; (e) effluent, waste and emissions management; (f) community risks (due to security and traffic) and grievance mechanism  

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.