Orion Pulp Mill - Uruguay

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Update: On July 10, 2008, IFC publicly released the first environmental monitoring report for Botnia's Orion pulp mill in Uruguay since the mill began operating in November 2007. The assessment of operating performance was prepared by EcoMetrix Incorporated, an independent environmental consulting firm. The report finds that the mill is performing to the air and water quality standards projected in the Cumulative Impact Study and Environmental Impact Assessment, as required by IFC, and well within the limits established by the environmental permits issued by the Uruguayan regulator, DINAMA. This first six-month report, and the two annual reports that will follow at the end of 2008 and 2009, are required under provisions of the Environmental and Social Action Plan agreed between Botnia and IFC as a condition for IFC's financing of the mill.

The following document was posted on July 10, 2008:

• EcoMetrix Report: Orion Pulp Mill Environmental Performance Results

On November 13, 2007, IFC released reports from two independent external consultants that indicate that Botnia's Orion pulp mill in Uruguay is ready to operate in accordance with IFC's environmental and social requirements and international BAT standards. IFC also provided an updated Environmental and Social Action Plan, reflecting the status of Botnia's compliance with the issues to be addressed as a condition of IFC financing of the project. The reports and updated ESAP confirm that the Orion pulp mill will generate major economic benefits for Uruguay and will not cause harm to the environment.

The following documents were posted on November 13, 2007:

• Environmental and Social Action Plan - Nov. 2007 Update
• EcoMetrix Report: Assessment of Compliance with ESAP
• AMEC Report: Audit of Readiness to Begin Operations

On November 21, 2006, the boards of directors of the International Finance Corporation and the Multilateral Investment Guarantee Agency approved a $170 million investment by IFC and a guarantee of up to $350 million from MIGA for the Orion pulp mill project in Uruguay. The two organizations, after completing a thorough review of the facts, are convinced that the mill will generate significant economic benefits for Uruguay and cause no environmental harm.

The decision to proceed was based on an extensive due diligence process, which included the conclusive and positive findings of a cumulative impact study and a subsequent review of the study undertaken by independent experts (the Hatfield report, available in Spanish and English). The conclusions of the study and the experts' report confirm that the mill will comply with IFC and MIGA's environmental and social policies while generating significant economic benefits for the Uruguayan economy.

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For more information, view the Summary of Proposed Investment or the Environmental & Social Review Summary.