BURAPHA AGRO-FORESTRY CO. LTD
Who is our client
Burapha is a Lao-Swedish joint venture with forest plantations and processing capacity, which develops and manages agroforestry plantations in the greater Vientiane area (Laos). Burapha’s strategy is to increase its plantation base and to build a plywood mill of nominal capacity 59,000 m3, with the ultimate objective to produce cost competitive and sustainable FSC certified wood products, mainly plywood, for export and the domestic market.
The proposed funding will be used for CAPEX of the plywood mill and expansion of plantations from 3,540 ha to 7,000 ha by the end of 2019.
Why we fund this project
The proposed transaction fits with the agribusiness strategy and forestry strategy due to: i) the region (Laos), (ii) sector (Agro-forestry) with integrated production and processing, iii) catalysing/cooperation with preferred partner DFIs; iv) acceptable risk/ return balance; v) green and inclusive transaction.
Environmental and social rationale
The project is considered to be a medium high risk, category B+ project, based on general limited potential adverse social or environmental impacts that are mainly site specific and can be mitigated by normal industry practices. IFC Performance Standards 1 to 7 are applicable: E&S Management, Labour (circumstances), Pollution Prevention, Community, Land Acquisition, Biodiversity and Indigenous People. Performance Standard 8, Cultural Heritage is not relevant, there have been nor are expected areas of cultural significance to be impacted by Burapha’s operations. The client will comply with the IFC Performance Standards (IFC PS), the General IFC/WB EHS Guidelines and the sector-specific EHS guideline: Forest Harvesting Operations and Sawmilling and Wood-based products and will maintain FSC certification for its operations.
|Date||Total FMO financing|
|12/10/2018||USD 5.00 MLN|
- Lao People's Democratic Republic
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 5.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)