Summary of Proposed Investment
Project Number
502223
Company Name
INTERNATIONAL FINANCE CORPORATION
Date SPI Disclosed
Mar 6, 1998
Country
World Region
Industry
other
Status
Completed
Sector
Other (For Non-Investment Projects)
Department
Sustainable Business Advisory Dept
Environmental Category
FI
Project Description
Summary Of Project Information (SPI)
Sector
Project No502223
Projected Board DateMarch 25, 1998
Company NameVarious, to be determined through investment solicitation
Technical Partner and/or Major Shareholders
PVMTI will make investments in an estimated 15-20 private sector companies or consortia engaged in photovoltaic sales, service, and system integration. Investments will be managed by an external team specializing in renewable energy financing and technical and program oversight under close supervision by IFC.
Project Cost Including proposed IFC investment
$85-115 million with $25 million invested by IFC using GEF funds (investment on IFC’s account to be determined on a case-by-case basis). An additional $5 million in GEF funds is reserved for program implementation and administration.
Location of project and Description of site
India (for investment of $15 million in GEF funds), Kenya ($5M), and Morocco ($5M) have been selected for PVMTI investments.
Description of Company and Purpose of Project
The Global Environment Facility (GEF) has provided $30 million in concessional funds to IFC to support investments in private sector projects to encourage market development for photovoltaics. PVMTI will address market barriers by making available appropriate financing and stimulating business activity, accelerating PV penetration to achieve reductions in greenhouse gases. By harnessing the innovation and discipline of the private sector in designing and implementing PV projects, IFC will help shift the design and financing of PV market activity to a more sustainable and replicable private sector context. PVMTI projects will be designed by private sector companies or consortia in response to a broadly distributed solicitation for project proposals, and will receive investments ranging from $500,000 to $5 million based on the strength of their proposed business plans and strategy to address market barriers, as well as the potential for leveraging GEF resources and likelihood of strategic and commercial success in developing the market. Financing terms will be flexible, and most investments are expected to request debt at below-market terms (featuring lower interest rates and/or longer maturities than are available in local financial markets for these activities). The use of other financing such as partial guarantees, equity, or other instruments will be considered if the benefits justify the additional complexity. Funds are expected to be used for working capital in company operations, for end-user credit, or to partially fund guarantee mechanisms. IFC is the “executing agency” for PVMTI, and will implement the program with the long-term assistance of a designated External Management Agent (EMA). Projects will be selected by IFC based on pre-screening and initial due diligence undertaken by the EMA.
Environmental Category and Issues
This is an environmental review category FI project. IFC(or the EMA on its behalf after appropriate training) will undertake an environmental review of each sub-project’s compliance with host country environmental, health, and safety requirements as well as applicable World Bank Group policies and guidelines.
Date SPI sent to PIC March 6, 1998
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
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