IFC as implementing entity of the EFSD+ seeks to provide up to EUR 9.0 million in the form of a first-loss guarantee (“blended concessional finance co-investment”) to support the Project which is part of the second round of utility-scale solar program in Tunisia. Such a project would not be achievable without the catalytic involvement of the private sector in Tunisia, where participation remains limited under the evolving regulatory framework governing the renewable energy sector. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 2.0% of the total project cost. The total cost of the Project is EUR 149 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’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.

The Project is expected to have significant development impact through the increased share of renewable energy in the country’s generation mix, as it will: (i) reduce GHG emissions; (ii) reduce the country’s average electricity generation cost; and (iii) increase access to domestic energy in the context of a high share of energy imports. The Project will therefore contribute to the resilience of the Tunisian energy sector, as it will diversify the energy generation mix and reduce reliance on energy imports, and to the Government’s renewable energy targets. The Project is also expected to promote market competitiveness by demonstrating the viability of privately-owned independent power producers in Tunisia, attracting further private sector investment in the renewable energy sector.

IFC’s additionality is in the form of: (i) long-term financing provision; (ii) non-commercial risk mitigation through knowledge transfer on structuring and de-risking renewable energy projects to make them bankable; and (iii) providing support on the management of Environmental and Social risks in accordance with IFC’s Performance Standards (PS)

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

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.