Bogota, Colombia, August 16th 2019 — IFC, a member of World Bank Group, approved a $15 million loan to Reforestadora del Sinú, a forestry company focused on rapid-growth plantations, for the development and maintenance of a eucalyptus plantation.
The IFC loan, the first approved for this type of project in Colombia, will help Reforestadora del Sinú generate employment and promote development in the Urabá region, which has suffered high social and financial costs caused by the displacement of over 20,000 people as a result of the armed conflict that ended in Colombia in 2015 with the signing of a peace agreement. Reforestadora del Sinú has established 5,500 hectares of plantations and, to protect the environment, has established 1,100 hectares of biological corridors and conservation areas.
“Development of the rural and forestry sector in Colombia is fundamental for the future and wellbeing of the country,” said Juan Gonzalo Flores, IFC’s acting manager in the Andean region. “This project shows IFC’s commitment to supporting the sustainable development of Colombia and we are very pleased with this partnership with Reforestadora del Sinú,” said Flores.
The objective of Reforestadora del Sinú is to become the first Colombian company to export fiber to the cellulose and paper market in Asia and Europe. The company’s goal is to reach 10,500 hectares planted by 2021, which will be the basis for the exportation of 250,000 tons of woodchip annually. The project will contribute to the capture of 500,000 tons de CO2 annually.
In the social sector, through its social foundation, REFOSINU, the company is developing a number of high-impact social projects for underserved rural communities neighboring the project, like access to drinking water, health, micro employment and education, benefiting over 1,000 families.
Over the last decade, IFC has invested in sustainable forestry projects worth S1.5 billion, including production of paper, cardboard, wood, and cellulose processing. Worldwide, IFC’s forestry clients employee about 85,000 people.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than US$23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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