IFC as implementing entity of the IDA21 PSW BFF and for its own account under IFC’s CCW-IDA21 is expected to provide up to US$6.48 million in the form of a subordinated concessional loan (“blended finance concessional finance co-investment”). The blended concessional finance co-investment is needed to enhance the risk-return profile of the project and support the scale up of a mini-grid business model that would otherwise not be achievable due to its high risks and limited track record in Nigeria. The level of concessionally (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 3% of the total project cost of US$45.5 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 blended concessional finance co-investment. As it 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 Development Finance Institution (“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.

7.45 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.45
Equity

* These investment figures are indicative

The project has benefitted from a climate and inclusion adjustment. The most significant expected project-level outcomes are improving the access, reliability, and affordability of electricity for consumers without access to power in Nigeria, with important environmental impact through GHG emissions savings. At the market level, IFC anticipates that the project will contribute to increase the competitiveness of the solar PV mini-grid market in Nigeria by using a programmatic approach to roll out mini-grid pipelines faster with demonstration potential in the region.

IFC's additionality is both financial and non-financial, stemming from: (i) Financing structure: IFC is expected to provide financing through a revolver in USD, in a FX constrained environment, part-financing the Company's construction costs and thereby accelerating the Company's mini grid deployment in Nigeria. This type of funding (in USD) is not readily available given the risks typically associated with the nascent mini-grid sector in Nigeria. Through the Platform, IFC also mobilizes concessional funding through blended finance, and commercial funds from parallel lender, which has been limited in Nigeria; (ii) Standard setting: IFC's non-financial additionality encompasses support to comply with rigorous E&S standards; and (iii) Knowledge, innovation, and capacity building: IFC will leverage its global sector knowledge and experience in the mini-grids market in sub-Saharan Africa to support the Company scale up its investments in the sizable mini-grids market and expand its reach. The project will benefit from IFC's learnings under the Scaling Mini-Grid initiative, a mini-grid bankability study IFC conducted in 2021 for Nigeria and DRC and other projects under the IFC – DARES Platform (Project #: 48667).

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Renewable Energy Installed Capacity	MW		Not Available	Not Available	Not Available
Direct Employment (#) Operations And Maintenance	individuals		Not Available	Not Available	Not Available
Number of Customers : electricity connections (distributors)	Millions		Not Available	Not Available	Not Available

This is a Category B project according to IFC’s Policy on E&S Sustainability as the E&S impacts associated with the project are limited, generally site-specific, and readily addressed through mitigation measures—primarily due to the small physical footprint of the mini-grid sites (around 0.25 hectares each). Key E&S risks and issues associated with the Project are: (a) corporate E&S management systems and staffing to manage the operations in line with IFC PSs requirements; (b) adequate E&S screening and assessment for proposed mini-grids; (c) assurance of fair, safe, and healthy working conditions for workers in compliance with country’s labor laws and IFC PS2 requirements, including Gender-Based Violence (GBV) and Sexual Exploitation, Abuse, and Sexual Harassment (SEAH), management of contractor workers, and solar equipment supply chain risks; (d) occupational health and safety management; (e) air quality, wastewater, and solid waste management in line with World Bank Group (WBG) Environment, Health, and Safety (EHS) Guidelines; (f) community risks due to operations, transport, and security ; and (g) stakeholder engagement and community grievance management.

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.