Paracel Paraguay Promotes Forestry Industrial Hub After US$165 Million Financing From IDB Invest

IDB Invest approved financing of up to US$165 million for Paracel aimed at developing a sustainable forestry industrial hub in Paraguay, an initiative that seeks to strengthen the forestry sector's value chain and facilitate the advancement of a future pulp mill project in the country.

The financing will be primarily directed towards the construction of essential infrastructure, considered key to the industrial development of the project and to generate the necessary conditions that allow the installation of new activities linked to the wood sector.

The operation was announced during the IDB Group Annual Meetings in Asunción and combines IDB Invest's own resources with capital mobilized from third parties, reflecting the interest of international investors in the project.

According to Ilan Goldfajn, president of the Inter-American Development Bank Group, projects like Paracel demonstrate the potential of the private sector to boost economic growth, job creation and regional development in Paraguay.

For his part, James Scriven, CEO of IDB Invest, stated that the financing will contribute to the development of strategic infrastructure for the forestry industrial hub and will allow the mobilization of private capital towards one of the most important industrial investments in the country's history.

Per Olofsson, Chairman of the Board of Paracel, emphasized that the approval of the financing represents a key step forward in developing the future pulp mill and consolidating the forestry value chain in Paraguay. He noted that the company has developed a broad, competitive, and internationally certified forestry base, with more than 90 million trees planted.

The project includes the construction of strategic assets, among them a port and river terminal, power transmission lines, access roads, and logistics infrastructure. These investments aim to improve regional connectivity, reduce logistics costs, and facilitate the establishment of new industries linked to the forestry sector.

The industrial park will be located in the department of Concepción, in northern Paraguay, a region with high productive potential and abundant forest resources. The initiative will leverage the country's competitive advantages, such as access to renewable energy, competitive logistics, and the Free Trade Zone regime, with the aim of strengthening the competitiveness of the Paraguayan forestry sector in regional and international markets.

The operation also includes support from IDB Invest through an Environmental and Social Action Plan, along with initiatives aimed at institutional strengthening, energy efficiency and project resilience, in line with international sustainability standards.

It is estimated that the development of the project will generate around 7,000 direct and indirect jobs, contributing to the economic growth and industrial development of the northern region of the country.