Paraguay Forestry Project

dropped

The project is structured around the following four components:Component 1 “Institutional Strengthening” will build the capacityand effectiveness of the National Forestry Institute (INFONA), including by strengthening the enabling environment needed tosupportthe development and control of Paraguay’s forestry sector; increasing the efficiency of INFONA's operations by investing ininformation systems; increase its ability to monitoring and plan forest use; and develop an extension service.Component 2“Sustainable Forest Management” will support sustainable forestry and forest conservation activities through grants and credits tosmall- and medium-scale producers, along with technical assistance in design, planning, plantation establishment, and forestmanagement to increase private sector capacity. Subprojects financed with loan proceeds will incorporate best management practicesfor environmental and social protection, and certification for forest management when possible. Support will be provided for thedevelopment of a national forest sustainability certification standard and market development for Paraguayan wood products. Thesemeasures will help set high standards for Paraguayan forestry and serve as models to the sector, producers, and potential investorsand buyers.Component 3 “Knowledge Generation through Innovation Pilots” will advance innovative approaches to forestry inParaguay and jump-start applied research. Two large operational-scale pilot subprojects will be financed to develop and implementactions for addressing complex forest biomass issues around the area of Tobati and implementing forest restoration around Naranjal.In addition, a series of smaller-scale thematic pilots for conducting applied research will be financed. Eligible themes forfinancing will include inter alia, forest conservation, restoration, environmental sustainability, multiple-use forestry, woodutilization, harvesting, native forest management, non-timber forest products (NTFPs), and new approaches and techniques forproduction forestry, among others.Component 4 “Project Management” will support the efficient and effective implementation of theproject through a project implementation unit within INFONA and include the administration of loan proceeds, audits, and projectmonitoring and reporting, including for environmental and social standards, gender, and the procurement of goods andservices.Component 5 "Contingent Emergency Response Component" is available to provide immediate response to an Eligible Crisisor Emergency, as may be present itself in the future.