Summary of Proposed Investment
Project Number
506996
Company Name
INTERNATIONAL FINANCE CORPORATION
Date SPI Disclosed
May 6, 2002
Country
World Region
Industry
Infrastructure
Projected Board Date
Jun 6, 2002
Status
Pending Approval
Sector
Other (For Non-Investment Projects)
Department
Risk Mgmt. and Financial Policy
Environmental Category
B - Limited
Project Description
The EOF will provide catalytic project development funding and flexible investment financing for innovative projects that address primarily local environmental issues. Target sectors include: (i) environmental infrastructure services (e.g., clean water supply and wastewater treatment), (ii) pollution abatement services (e.g., for outdoor and indoor air pollution), (iii) sustainable technologies and business models (e.g., renewable energy, low-impact agriculture, eco-tourism), and (iv) ‘eco-efficiency’ improvements that reduce material and energy inputs.
Investments in these types of projects clearly contribute to IFC’s mission of supporting sustainable development. However, a number of promising projects do not yet meet IFC’s mainstream investment criteria because they involve higher-than-acceptable costs and/or risks. The ventures hold out the prospect for increased environmental sustainability but must overcome the uncertainty associated with new markets, new technologies and new ways of doing business.
The EOF will allow IFC to support these more challenging ventures with grants for project preparation and/or flexible investment financing. EOF projects will be pursued in a manner that clearly acknowledges the higher risks and designs appropriate interventions. In this way, the EOF will give IFC the ability to ‘push the market’ towards adopting new business models and technologies that protect the environment and address problems of critical concern to people living in developing countries, especially the poor.
Investments in these types of projects clearly contribute to IFC’s mission of supporting sustainable development. However, a number of promising projects do not yet meet IFC’s mainstream investment criteria because they involve higher-than-acceptable costs and/or risks. The ventures hold out the prospect for increased environmental sustainability but must overcome the uncertainty associated with new markets, new technologies and new ways of doing business.
The EOF will allow IFC to support these more challenging ventures with grants for project preparation and/or flexible investment financing. EOF projects will be pursued in a manner that clearly acknowledges the higher risks and designs appropriate interventions. In this way, the EOF will give IFC the ability to ‘push the market’ towards adopting new business models and technologies that protect the environment and address problems of critical concern to people living in developing countries, especially the poor.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Louis Boorstin
Manager, Environmental Markets Group
Environment and Social Development Department
International Finance Corporation
2121 Pennsylvania Avenue, N.W.
Washington, D.C. 20433 USA
Manager, Environmental Markets Group
Environment and Social Development Department
International Finance Corporation
2121 Pennsylvania Avenue, N.W.
Washington, D.C. 20433 USA