Company name
Paracel S.A.
Project number
13258-01
Category A projects could result in potentially significant environmental and/or social risks and impacts, which are diverse, irreversible, or unprecedented that may extend beyond the boundaries of the actual project site or facilities. In principle, Category A includes projects which have significant impacts on protected or sensitive areas21 and/ or vulnerable groups.
E&S category
A
Country
Paraguay
Sector
Manufacturing
Status
Proposed
Disclosed date
07/01/2021
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
12/13/2022
Approval date
12/13/2022
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
Corporates Division
Investment type
Syndicated amount
USD $ 500,000,000
Financing amount
USD $ 200,000,000
Currency
USD
Project scope and objective
The proposed transaction consists of a senior secured A Loan to be provided to Paracel S.A. (“Paracel,” the “Company,” or the “Client”). Other international development finance institutions ("DFIs") are expected to participate under pari-passu Co-Loans ("Co-Loans"). Total Project costs (including mill capex, forestry, and financing costs) are estimated to be US$3.6 billion and are expected to be financed with a combination of equity and long-term debt.
Paracel is a joint venture established by Copetrol (Paraguay) and Girindus Investments (Sweden), among other investors who have joined the Project afterwards. The Company is developing a greenfield kraft pulp mill and associated eucalyptus plantations (the “Project”) in the Departments of Concepción and Amambay, Paraguay. Paracel expected production is up to 1.8 million metric tons per year of Bleached Eucalyptus Kraft Pulp (“BEKP”). Paracel will be the largest industrial development and the largest private investment in Paraguay’s history, as well as the first large-scale pulp mill. The Project will outsource the development of the required export outbound logistics (river and seaports).
Paracel is expected to generate approximately 220MW of renewable energy of which about 100MW are expected to be sold to the national grid. The mill will be located on a 1,200 hectare (ha) former cattle ranch 13 kilometers (km) due north of and 18 km by existing roads from the city of Concepción, on the left bank of the Paraguay river. The Paraguay river will be the water source for the mill and the receiving water body for treated effluents.
A major Project component is the approximately 190,000 ha of former cattle ranch properties in the Departments of Concepción and Amambay owned and to be partially converted to eucalyptus plantations (the rest to be conserved) by the Company to supply wood to the mill in future years. The mill will consume about six million cubic meters of eucalyptus wood per year once operational1. The area of influence of the eucalyptus plantation properties includes nine indigenous communities of the Pai Tavyterá and Mbya guaraní ethnic groups of the guarani linguistic family. In addition, the urban area of Concepción has a multi-ethnic indigenous community in the area of influence for both the mill and plantations that is occupied by mostly speakers of the Maskoy language family. The Project will also construct ancillary facilities: i) a new substation at the mill site; and ii) a 25-km transmission line to connect the Project’s substation to the national grid. The Project will also include the following associated facilities: i) six worker lodgings in the city of Concepción, with a total capacity of 8,000 people; ii) a riverine port facility for loading pulp onto barges in Paraguay; and iii) an existing coastal shipping export terminal in Uruguay.
The Project is being designed using the best available technology. Its pre-construction phase initiated in January 2021 and construction is expected to last until November 2023, for a total of 28 months. Mill operation is estimated to initiate by the end of 2023.
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Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
PARACEL - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
604.2 Kb
PARACEL - ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)
245.8 Kb
Client files
This section provides the key environmental and social assessment documents produced by the client for this project.
PARACEL SUSTAINABILITY REPORT 2022 (IN SPANISH)
13.6 Mb
PARACEL - STAKEHOLDER ENGAGEMENT PLAN - 2021 06 08
1.3 Mb
PARACEL - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT - ESIA - VOLUME III - ASSESSMENT MITIGATION MEASURES AND CONCLUSION - 2021 07 31.PDF
3.6 Mb
VOLUME II BOOK I - BASELINE PHYSICAL 15
72.8 Mb
PARACEL - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT - ESIA - VOLUME II BOOK III - BASELINE SOCIO-ECONOMIC - 2021 07 31
22.8 Mb
PARACEL - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT - ESIA - VOLUME IV - COMPLEMENTARY STUDIES - 2021 08 04
33.4 Mb
PARACEL - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT - ESIA - VOLUME I - PROJECT CHARACTERIZATION - 2021 05 31
57.9 Mb
PARACEL - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT - ESIA - VOLUME II BOOK II - BIOTIC ENVIRONMENT - 2021 07 31
30.3 Mb
ESMS MANUAL - FINAL - 2021 09 24
901.1 Kb
PARACEL - EUCALYPTUS PLANTATION - CUMULATIVE IMPACT ASSESSMENT CIA - 2021 10 13
6.9 Mb
PARACEL - ESIA EUCALYPTUS PLANTATION - EXECUTIVE SUMMARY - 2021 10 13
3.3 Mb
PARACEL - ESIA EUCALYPTUS PLANTATION - VOLUME II - BOOK I - BASELINE CONDITIONS - PHYSICAL ENVIRONMENTAL - 2021 08 20
29.6 Mb
PARACEL - ESIA EUCALYPTUS PLANTATION - VOLUME III - IMPACT IDENTIFICATION AND ANALYSIS - 2021 10 13
1.9 Mb
PARACEL - ESIA EUCALYPTUS PLANTATION - VOLUME I - DESCRIPTION OF PROJECT - 2021 08 20
3.5 Mb
PARACEL - ESIA EUCALYPTUS PLANTATION - VOLUME II - BOOK II - BASELINE CONDITIONS - BIOTIC ENVIRONMENT - 2021 10 13
51.0 Mb
PARACEL - ESIA EUCALYPTUS PLANTATION - VOLUME II - BOOK III - BASELINE CONDITIONS - SOCIO-ECONOMIC ENVIRONMENT - 2021 08 20
47.0 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN VI - PROGRAMAS BÁSICOS DEL SISTEMA DE GESTIÓN AMBIENTAL Y SOCIAL - SGAS - 2020 07 15
1.5 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN V - ESTUDIOS COMPLEMENTARIOS - 2020 07 15
73.2 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN IV - REPORTES ANALITICOS - 2020 07 15
200.0 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN III - EVALUACION DE IMPACTOS AMBIENTALES - 2020 07 15
1.5 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN II - TOMO II - DIAGNOSTICO MEDIO BIOTICO - 2020 07 15
26.8 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN II - TOMO III - MEDIO SOCIOECONOMICO - 2020 07 15
8.0 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN II - TOMO I - MEDIO FISICO - 2020 07 15
29.7 Mb
PARACEL - ESTUDIO DE IMPACTO AMBIENTAL - EIA - VOLUMEN I - CARACTERIZACION DEL PROYECTO - 2020 07 15
21.8 Mb
PARACEL - ESTUDIOS DE IMPACTO AMBIENTAL Y SOCIAL - EIASS - RESUMEN EJECUTIVO - 2021 10 13
4.0 Mb
PARACEL - EVALUACION Y GESTION DE IMPACTOS ACUMULATIVOS - EGIA - 2021 10 13
6.9 Mb
PARACEL - LANDSCAPE-LEVEL CRITICAL HABITAT ASSESSMENT
4.6 Mb
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Additional Documents
Native Peoples Map
Contact information
For inquiries, comments and information requests about the project
Request informationAlternatively, you may also use the following contact information :
Client Contact
cyro.croce@paracel.com.py
PHONE NUMBER
+595 2153 7445 ext. 560
POST OFFICE ADDRESS
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
IDB Invest has zero tolerance to reprisal or retaliation against anybody who voices its opinion or opposition to IDB Invest-financed projects.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Early disclosure
For projects with high environmental or social risk an Environmental and Social Strategy (ESS) is prepared early on during the project appraisal and prior to carrying out the environmental and social due diligence (ESDD). The ESS includes the initial E&S risk categorization and a brief description of potential Performance Standards applicable to the project. The ESS for this project is available below. Together with the ESS, IDB Invest also provides access to the client’s preliminary E&S documents that will be reviewed during the ESDD. The client E&S documents for this project can be found under the “CLIENT FILES” section below. Once the environmental and social due diligence is completed, an Environmental and Social Review Summary (ESRS) for the Project will be published on this page.
PARACEL-CLASSIFICATION AND ENVIRONMENTAL AND SOCIAL STRATEGY (ESS)-JUNE 28 2021
133.1 Kb