WASHINGTON, D.C., October 12, 2006
– The World Bank Group’s International Finance Corporation and Multilateral Investment Guarantee Agency released today the final cumulative impact study for two proposed pulp mill projects in Uruguay. Both institutions are confident that the findings demonstrate the mills will comply with IFC and MIGA’s environmental and social policies while generating significant economic benefits for the Uruguayan economy.
A decision by IFC and MIGA on whether to seek approval for the financing and guarantee from their respective Boards will be made shortly.
The study was commissioned to evaluate the individual and cumulative environmental, social, and economic impacts of the proposed mills: Oy-Metsa Botnia’s Orion plant and Grupo Empresarial ENCE’s Celulosa de M’Bopicua plant.
The final cumulative impact study is the result of a thorough and comprehensive process of assessment and also reflects key inputs from stakeholders. The final study provides additional analysis and updated information. It considered water and air impacts, process technology, impact of plantations and wood supply, and impact on tourism, fishing, and other livelihoods. The study found that the proposed mills compare favorably with best available technology and best environmental practice for mills in Europe and North America.
About IFC
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit www.ifc.org.
About MIGA
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment into emerging economies to support economic growth, reduce poverty, and improve people’s lives. In addition to providing technical assistance to investment promotion agencies, MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders (covering expropriation, breach of contract, currency transfer restriction, and war and civil disturbance), and by mediating investment disputes. Since its inception, MIGA has issued nearly 850 guarantees for projects in 92 developing countries, totaling more than $16 billion in coverage. MIGA’s gross exposure stands at $5.3 billion.
