Release date: 17 April 2008
Promoter – Financial Intermediary
New Forests Company Ltd
Location
Description
Sustainable commercial plantation of eucalyptus and pine on degraded forest land. Namwasa is the first plantation of NFC, where the company intends to plant 6,544 ha until 2010.
Objectives
The objective of the project is to plant fast growing trees for harvesting and sale as poles and round log. The project will generate environmental (see below) and social benefits. In particular, it will create large employment opportunities and its extensive community development programme will help alleviate poverty in the surrounding rural areas.
Sector(s)
Proposed EIB finance (Approximate amount)
Up to EUR 4.65 million, with interest rate subsidy in accordance with the provisions of Annex II to the Cotonou Agreement.
Total cost (Approximate amount)
EUR 9.3 million.
Environmental aspects
The project may generate carbon credits through carbon storage from the trees planted and may become eligible under the Clean Development Mechanism (CDM).The project will also be supporting biodiversity: in addition to the plantation, 26% of the concession area will be left for Assisted Natural Regeneration including the plantation of local species and the creation of a fauna protected area.
Procurement
Equipment is being procured based on international consultations.
Status
Signed - 18/12/2008
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).