IFC, as implementing entity of the IDA PSW BFF and for its own account under IFC's CCW-IDA21, is expected to provide a US$30 million subordinated loan, and IDA PSW RMF would provide an up to US$50 million Liquidity Support Guarantee (“blended finance co-investments”). The blended finance co-investments will address lenders' participation constraints to invest in Ethiopia's first IPP, which is otherwise not commercially viable given the lack of track record and creditworthiness in the sector. The level of concessionality (i.e., “subsidy”) provided by the blended finance co-investments is estimated to be 14% of the total project cost. This estimate is based on the difference between (i) a “reference price” (calculated using IFC's and MIGA'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-investments. 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.

Ethiopia’s grid electrification remains evolving, with strong urban access but more limited rural coverage. Electricity consumption per capita also remains relatively low by regional standards. The Project is expected to improve access in line with M300 Compact objectives. Beyond project-level outcomes, Aysha Wind will be Ethiopia's first IPP, helping unlock private investment in renewables. The Project is advancing amid IMF and World Bank-supported reforms launched in 2024.

IFC's additionality in this Project is anticipated to be both financial and non-financial. In this Project, IFC’s additionality is in the form of: (i) long-term finance provision; (ii) resource mobilization; and (iii) helping to mitigate and manage potential environmental and social (E&S) risks.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Renewable Energy Generated	GWh		Not Available	Not Available	Not Available

The project is categorized as Category A in accordance with IFC’s Policy on Environmental and Social Sustainability (2012) due to potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible, or unprecedented, and that require comprehensive assessment, stakeholder engagement, and robust management measures.

The key potential E&S risks and impacts associated with the project during construction are: (a) loss of collective customary land, access to grazing land, and livelihood impacts of pastoralists communities; (b) habitat disturbance during site preparation and infrastructure development; (c) a sizable workforce, giving rise to risks and impacts related to labor influx, worker accommodation, occupational H&S, pollution and contractor management; and (d) risks associated with traffic and transport along the Djibouti–Aysha corridor. The key potential E&S risks and impacts during operation will include: (a) impacts on birds and bats associated with WTG operation; (b) noise and shadow flicker impacts on the community. Both phases will involve other risk and impacts e.g. (a) community health and safety, security arrangements, and emergency preparedness; and (b) adequate self-sufficiency in waste management and emergency response provisions.

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