Blended financing combines development funding and philanthropy to attract private capital for projects like infrastructure. It can leverage private investment for power through public-private partnerships. This requires the World Bank's Private Sector Window to create an attractive environment, good projects, and acceptable risk-return for investors. Experience shows private sector involvement boosts efficiency, productivity, innovation and growth. This document discusses blended financing and its potential use for a project in Sierra Leone.

1. Summary
Blended Financing involves the strategic use of development finance and philanthropic funds to
mobilize private capital flows.
Through initiatives such as the Public Private Partnership (PPP), Blended Financing could be
employed to leverage private sector investment in a vital infrastructure project such as power
supply.
This entails measures through the IDA PSW, in creating investment friendly environment, a good
project pipeline and a favorable risk-return condition for the investor.
Experience shows that, private sector participation in the development, increases efficiency and
productivity, while promoting innovation and growth.
This project is targeted at, development financers and the Sierra Leonean government.