BID Invest and Paracel Sign Mandate to Develop Paraguay’s First Sustainable Forest Industrial Hub

BID Invest and Paraguayan forest leader Paracel S.A. have signed a mandate to evaluate the development of an integrated industrial hub, aiming to consolidate the wood value chain and support future expansion of Paracel's cellulose plant in Concepción. The project includes construction of critical infrastructure such as a power transmission line and a private river port to attract new industries linked to biofuels, textiles, cardboard, MDF boards, biochar, metallurgical biocarbon, and sustainable chemicals. Located in northern Paraguay, the hub leverages abundant forest resources, renewable energy access, free trade zone benefits, and competitive logistics. The initiative is expected to generate around 7,000 direct and indirect jobs, promote economic diversification, and position Paraguay as a regional leader in renewable agroforestry production. BID Invest is considering long-term financing and technical assistance to ensure high environmental and social standards, enhancing energy efficiency, cogeneration, and resilience in the project.