IDB Invest promotes Paracel, the largest private investment in the history of Paraguay, to develop the first sustainable forestry industrial hub
The operation will finance key infrastructure for the construction of the company's industrial park and the future pulp mill.
ASUNCIÓN — IDB Invest approved funding of up to $165 million for Paracel S.A. aimed at developing a sustainable forestry industrial hub in Paraguay. The project is expected to generate around 7,000 direct and indirect jobs.
Financing, aimed at the construction of essential infrastructure, is a vital link in creating the necessary conditions to consolidate the forest value chain in Paraguay and facilitate the development of the pulp mill and new industries linked to the wood sector.
The transaction, announced in the context of the Annual Meetings of the IDB Group in Asunción, reaffirms IDB Invest's commitment to the growth of Paraguay and to the strengthening of the private sector as an engine of economic development in Latin America and the Caribbean. The financing combines IDB Invest's own resources with third-party mobilized capital, reflecting the interest of international investors in the project.
“Projects like Paracel show the potential of the private sector to boost growth, employment and regional development in Paraguay,” said the president of the IDB Group, Ilan Goldfajn. “The IDB Group, through IDB Invest, contributes to creating conditions and supporting investments that strengthen the country's productive base and open up new opportunities for development.”
“This project reflects Paraguay's potential to attract large scale industrial investment,” said James Scriven, CEO of IDB Invest. “Our funding will contribute to the development of key infrastructure for this forest industrial hub and will help mobilize private capital for one of the most important investments in the country's history.”
“The approval of this funding represents a fundamental step for the development of the pulp mill as an industrial hub, which we are building in Paraguay,” said Per Olofsson, Chairman of Paracel. “After developing a wide competitive forest base certified under international standards, with more than 90 million trees planted, Paracel has established itself as a benchmark in sustainable forest management. The support of IDB Invest now gives us the resources to move forward with the pulp mill and at the same time consolidate the forest value chain in the country, with a direct impact on the generation of employment, the attraction of new industrial investments and the sustainable development of the northern region of Paraguay.”
The structure will make it possible to proceed in phases in the construction of the strategic infrastructure necessary for the development of the forestry industrial hub.
The project involves the construction of key assets such as a port and river terminal, power transmission lines, access roads and logistics infrastructure. These investments will improve connectivity in the region, reduce logistics costs and facilitate the installation of new industrial activities linked to the forestry sector.
The project will promote economic development in the north of the country: Located in the department of Concepción, a region with high productive potential and abundant forest resources. The industrial hub will take advantage of the country's competitive advantages, such as access to renewable energy, competitive logistics and the Free Trade Zone regime, strengthening the competitiveness of the Paraguayan forest sector and expanding its inclusion in regional and international markets.
The operation is based on the environmental, social and governance standards that Paracel already consistently implements, aligned with international best practices. In this framework, IDB Invest joins the project, accompanying it with an Environmental and Social Action Plan, together with initiatives aimed at institutional strengthening, energy efficiency and resilience, thus reinforcing an integrated approach to sustainability from the start.
This financing is part of IDB Invest's strategy to mobilize private capital for projects that boost economic growth, generate formal employment and strengthen Paraguay's integration into regional and global value chains.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 400 clients in 25 countries, IDB Invest offers innovative financial solutions and advisory services that meet the needs of its clients in various sectors. Visit our website: www.idbinvest.org/es.
About Paracel
Paracel is the first Paraguayan cellulose forestry company, created to generate a positive impact on society. This Paraguayan company, the largest private enterprise in the country's history, has more than 203,000 hectares of its own land. It is led by three companies: Grupo Zapag, Heinzel Holding GmbH and Girindus Investments, all committed to sustainable development. Visit our website: https://www.paracel.com.py/
