IFC as implementing entity of the ERA Program for Ukraine alongside EC-UIF is expected to provide co-investments of €37.5 million, including first-loss guarantees, and a concessional loan (“blended concessional finance co-investments”) to help mitigate high country and project risks. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 9% of the total project cost of €248 million (including VAT). 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 part of IFC’s commitment to transparency in the deployment of concessional blended finance resources, the 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: www.ifc.org/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: www.ifc.org/blended finance.

This project will increase the supply of sustainable electricity in Ukraine while reducing c. 213,000 tons of CO2 emissions annually. Additionally, it will improve the resilience of Ukraine’s power sector by adding 120 MW of renewable energy capacity, thereby increasing investments in renewable energy for reconstruction and diversifying the country’s energy mix. The project will also improve the competitiveness of Ukraine’s power sector by demonstrating the viability of corporate power purchase agreements and the feasibility of developing privately financed renewable energy projects without public support.

IFC’s additionality in this project is both financial and non-financial. Financial additionality stems from the financing structure as IFC is providing a loan with a tenor of up to 17 years. IFC will also facilitate mobilization of additional funding for the project. Non-financial additionality includes non-commercial risk mitigation, as IFC’s presence is expected to provide investor confidence in a challenging market. IFC is also providing technical support to help the project improve its bankability, particularly in relation to electricity market analysis and offtake arrangements.

Indicator	Metrics	Comments
Carbon Intensity	tCO2e per relevant unit
Costs : generation	US cents/kWh

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