Vina Eco Board Co., Ltd.

completed

Vina Eco Board (“VECO” or “the Company”) is a greenfield particleboard manufacturing facility being established in Long An Province through a joint venture between Japan’s Sumitomo Forestry Co., Ltd. (“SFC” or “the Sponsor”) and Sumitomo Forestry (Singapore) Ltd. The proposed project is located on a 20 hectare parcel within the 1,007 ha Phu An Thanh Industrial Park adjacent to the Vam Co Dong River approximately 30 km from Ho Chi Minh City. The project includes an integrated particleboard line capable of producing 250,000m3 of particleboard from low value wood and development of an 11 MW biomass power plant. The manufacturing lines, biomass generation, and wood procurement systems are based on other SFC plants, including a comparable facility in Semarang Indonesia (PT. Rimba Partikel Indonesia: www.rpi.co.id) which was an earlier IFC investment and has been now operating for more than 20 years. VECO construction began in August2010 and is expected to be completed in November 2011. After production trials, the plant will begin full operations in March 2012 with the biomass power plant becoming operational in January 2013. The direct environmental and social (E&S) issues of the particleboard manufacturing facility are considered as are the indirect issues associated with the provisioning of wood fiber.