Renewable Energy and Energy Efficiency Fund (IFC)

The project will provide supplemental funding to a $150-210 million Fund being established by International Finance Corporation (IFC) and other investors. The Fund will make debt and equity investments in private sector projects in the renewable energy (RE) and energy efficiency (EE) sectors. The Fund will focus primarily on RE and EE projects or project portfolios in the $5-30 million range, a range which is often considered too small, too complex or too risky by institutional investors. The GEF funding will be used (1) to help overcome incremental costs and risks in the financing of individual projects through a co-financing facility capable of providing grants, equity, loans and guarantees to project sponsors (up to $24 million); (2) to pay the incremental costs associated with the higher-than-average fund management costs of identifying, analyzing and investing in a portfolio of RE/EE projects ($5-6 million); and (3) to cover IFC’s eligible funds for co-administering the GEF support (up to $1 million).