IFC, as implementing entity of the Canada-IFC Blended Climate Finance Program (BCFP), Korea Green, Resilient, and Innovative Development Blended Finance Program (K-GRID), and Clean Technology Fund (CTF), is expected to provide (i) senior loan of up to US$17 million from BCFP and (ii) Viability Gap Fundings (VGFs) of up to US$1.2 million from K-GRID and up to US$0.8 million from CTF. Without the support of blended finance, the stand-alone investment in a battery energy storage system to complement for renewable energy integration in Egypt is unlikely to be achievable due to the high upfront capital cost. The level of concessionality (i.e., subsidy) provided by the concessional senior loan and the VGFs is estimated to be 10.5% of the total Project cost of US$ 71.6 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 IFC blended concessional finance co-investments, this investment has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and over 20 other DFIs in 2017. Further information on these Enhanced Principles, IFC’s blended finance approach and governance, and details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at www.ifc.org/blendedfinance.

33.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	3.0
Guarantee
Loan	30.50
Equity

* These investment figures are indicative

The Project promises strong development impact in Egypt as it will (i) expand solar capacity to generate more efficient and environmentally friendly sources of energy and displace inefficient power generation sources; (ii) with battery energy storage system, support shifting generation from lower demand daytime hours to dispatch during peak consumption hours at night; (iii) improves affordability of energy, lowering the average cost of electricity generation; (iii) enhance the power sector resilience by diversifying the country’s power generation mix; and (iv) support knowledge transfer to facilitate future renewable energy investments with battery energy storage system.

In this Project, IFC’s additionality is in the form of: (i) bringing to Egypt the first BESS system which will serve as a pilot investment, (ii) financing structure; (iii) resource mobilisation; (iv) continued support and long-term commitment to Egypt’s renewable energy sector program; and (v) bringing expertise to help mitigate and manage potential environmental and social (E&S) risks.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#) [Actual]		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment

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.