IFC as implementing entity of the ERA Program for Ukraine alongside EC-UIF, is expected to provide co-investments of EUR 46.3 million, including first-loss guarantees for IFC and other lenders, and a senior loan (“blended concessional finance co-investments”) 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 blended concessional finance co-investments is estimated to be 6% of the total project cost of approximately EUR 290 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-investments. As part of IFC’s commitment to transparency in the deployment of concessional blended finance resources, similar blended concessional finance co-investments 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 has significant development impact, adding clean and affordable generation needed to help avert an imminent capacity shortage in an FCS market under extreme duress. At the market level, it will support improved competitiveness by replicating the long-term corporate power purchase agreement (PPA) structure established in GNG Wind Volyn (IFC disclosure project no. 48387), which is expected to generate further demonstration effects and deepen the corporate PPA market. In addition, the project is expected to enhance energy-system resilience by increasing the share of domestically produced renewable energy and diversifying the generation mix away from fossil fuels.

IFC’s additionality is both financial and non-financial. On the financial side, IFC is supporting the structuring of a long-term financing package that may include its own-account lending, concessional financing, first-loss guarantees and the mobilization of parallel loans. On the non-financial side, IFC is strengthening the Project’s bankability by supporting electricity market assessment. Beyond pre-investment support, IFC will provide technical guidance to help enhance the project’s capacity to manage environmental and social risks in line with IFC Performance Standards.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
GHG Emissions Reduction/Avoidance per year	ton CO2e per year		Not Available	Not Available	Not Available

This is a Category B project, as per IFC's Policy on Environmental and Social Sustainability, because the potential adverse environmental or social risks and/or impacts are limited, few in number, site-specific, largely reversible, and readily addressed through mitigation measures.

Key E&S risks and impacts are expected to include: (i) borrower’s & contractor’s E&S management capacity & systems, which need to be updated to align with the final ESIA and supplementary assessments; (ii) stakeholder engagement & grievance mechanism; (iii) labor & working conditions including occupational health and safety (OHS), contractor management, emergency planning, & workers grievance mechanism (WGM); (iv) waste management, water availability, noise & visual impacts; (v) community health, safety & security, including shadow flicker and blade throw; (vi) livelihood impacts; and (vii) potential biodiversity impacts with a particular focus on risks posed to birds & bats.

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