IFC as implementing entity of the ERA Program for Ukraine, and CTF alongside EC-UIF, is expected to provide co-investments of €79 million, including first-loss guarantees for IFC and other lenders, a senior loan, and viability gap funding to help mitigate high country and project risks constraining IFC’s and other lenders’ participation in the project. The level of concessionality (i.e., “subsidy”) provided by the instruments is estimated to be 9% of the total project cost of approximately €400 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 instruments. As part of IFC’s commitment to transparency in the deployment of concessional blended finance resources, similar instruments have been made available to other projects of a similar nature in Ukraine. Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: https://www.ifc.org/en/what-we-do/sector-expertise/blended-finance. 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: https://www.ifc.org/en/what-we-do/sector-expertise/blended-finance.

The project will add clean and affordable power generation capacity, which is required to avoid imminent supply shortage in a fragile and conflict-affected market undergoing extreme duress. The project will demonstrate the viability of the wholesale market by supporting two greenfield power projects operating on a fully merchant basis, with strong replication potential for other market participants. It will contribute to the diversification of Ukraine’s energy mix and to strengthening the country’s energy security.

IFC will provide a long-term innovative financing structure tailored to support the overall viability of the project in a context of exceptionally high uncertainty, with de-risking through blended finance. IFC is providing support to the Company on preparing a green finance framework and on the management of potential environmental and social (E&S) risks in line with IFC Performance Standards (PS).

Indicator	Metrics	Comments
Carbon Intensity	tCO2e per relevant unit	Net annual GHG emissions avoided by the Project.

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012) with potential limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures.

E&S risks and impacts associated with the investment relate to: (i) adequacy of ESIAs in line with IFC PS; (ii) company’s and contractor’s E&S governance, oversight and management capacity and systems; (iii) contractor E&S management; (iv) labor, working conditions and OHS, including in contractor workforce and the supply chain, and worker grievance mechanism; (v) water and waste management; (vi) community health, safety and security including impacts from shadow flicker, blade throw, noise, and traffic; (vii) land acquisition and land based livelihoods; (viii) biodiversity impacts, particularly risks posed to birds and bats; and (ix) stakeholder engagement and external grievance mechanism.

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