Portucel Moz

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The project is the first phase of an integrated US$2.3 billion plantation forestry, agriculture, pulp and green energy investment in Zambezia and Manica provinces of Mozambique which is being implemented by Portucel Mocambique Ltda (“Company”). The first phase aims to test the Company’s forestry model by developing up to 40,000 ha of sustainably managed eucalyptus plantations and establishing its operational base in the country in 2014-2016 (“Project”). IFC is working closely with the Company to provide advisory support at this critical early stage of the Project. The second commercial phase of the Project will comprise the establishment of commercial scale eucalyptus plantations, roll out of agriculture partnerships and construction of a 1.5 million ton pulp mill and a biomass power generation plant by 2023. The government has awarded the Company the land use rights to 356,000 hectares of land, roughly two-thirds of which will be used for forestry activities. Among the development priorities of the Project is improving conditions for agriculture on the remaining land and creating well-functioning agribusiness supply chains to link smallholders with markets. As such, the Project is positioned to become the first integrated eucalyptus plantations, agriculture, pulp and energy project in Mozambique. The objective of the proposed IFC investment is to support the development of this transformational opportunity to help create an inclusive agro-forestry project in Mozambique.