Renewable Energy and Efficiency Fund

completed

REVISED SUMMARY OF PROJECT INFORMATION (SPI)Project Name Global - Renewable Energy and Energy Efficiency Fund (REEF)Region GlobalSector InfrastructureProject No 007735 Board Date June 25, 1997 Fund Manager and Prospective InvestorsIt is expected that REEF will be managed by a consortium consisting of: Energy Investors Funds (EIF), Environmental Enterprises Assistance Fund (EEAF), E & Co and a major international bank. Prospective equity investors in addition to IFC include ABN Amro, John Hancock Life Insurance Company, and other investors to be mobilized in the fundraising effort.Mobilization Target including IFCEquity fund of US$110 million, debt facility of US$100 million, and support from the Global Environment Facility (GEF) of up to $30 million. IFC would invest up to US$15 million in the equity fund and would provide an A loan of up to US$20 million to the debt facility. IFC B loans may also be mobilized. Purpose and Description of ProjectREEF will be the first global financing vehicle dedicated to investing in renewable energy (both grid-connected and off-grid) and energy efficiency projects in developing countries. These projects offer competitive solutions to meeting energy needs and are important alternatives to the combustion of fossil fuels, the major source of greenhouse gas emissions leading to global warming. IFC conducted a detailed market study, selected a fund management group, and helped develop REEF’s proposed capital and management structure with funding from the governments of France, Germany, the Netherlands, Norway and the United States and IFC’s Power and Environment Divisions.REEF is proposed to include the availability of both equity and debt financing for investee companies, focusing on small-and-medium size projects and companies requiring US$1-50 million in financing. Support from the GEF will enable REEF to include investments in smaller, more complex and/or more difficult projects that would otherwise be problematic for an international fund to consider.Environmental Category and IssuesThis is a category FI project according to IFC’s environmental procedure. The fund manager will establish a review process under IFC supervision that ensures that investments made by REEF are in compliance with host country environmental laws and regulations and applicable IFC/World Bank environmental guidelines.Date SPI sent to PIC May 27, 1997REVISED October 22, 1997For Additional Information contact: Corporate Relations Unit -telephone (202) 473-7711facsimile: (202) 974-4384P:\PIC\1WS07735.DOCOctober 22, 1997 6:35 PM