IDB Invest and Paracel sign a mandate to evaluate the development of Paraguay's first sustainable forestry industrial hub
The agreement marks the first step in financing the project, which would allow the construction of key infrastructure for the new industrial hub, attracting investment and generating employment in the north of the country.
ASUNCIÓN, Paraguay — IDB Invest signed a mandate with Paracel S.A., a leading company in the Paraguayan forestry sector, for the development of a comprehensive industrial hub that seeks to consolidate the wood value chain and lay the foundations for a future expansion of its pulp mill in Concepción.
The project under evaluation contemplates the construction of essential infrastructure, such as an electrical transmission line, a private river port and other complementary works that would enable the arrival of new industries linked to the sector. The location seeks to capitalize on strategic advantages such as the abundance of forest resources in the region, access to renewable energy, the benefits of the Free Trade Zone and access to highly competitive logistics.
This investment would mark a strategic boost for economic development in the north of the country, promoting productive diversification and the creation of an estimated 7,000 direct and indirect jobs. The project would strengthen the competitiveness of the forestry sector, attract new industries in the area such as biofuels, fabrics and cardboard, MDF boards, biochar, metallurgical biochar and sustainable chemicals, and would consolidate Paraguay's position as a regional agroforestry reference in renewable production.
Long-term financing, currently under analysis by IDB Invest and subject to approval by the appropriate bodies of the institution, would include the mobilization of additional resources from international commercial banks and development finance institutions, which is part of IDB Invest's strategy to attract more private capital to development projects in Paraguay and the region.
In addition to funding, IDB Invest is exploring providing technical assistance to strengthen compliance with high-level environmental and social standards. Cooperation opportunities will also be explored through advisory services and mixed financing, focused on energy efficiency, cogeneration and resilience.
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 and promote the demand for biodegradable products. This Paraguayan company, the largest private enterprise in the country's history, has 199,000 hectares of its own land. It is led by three companies: the Zapag Group, Heinzel Holding GmbH and Girindus Investments, all committed to sustainable development and the creation of social, economic and environmental value. Visit our website: https://www.paracel.com.py/
