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Community / Land projects / Sinu Project

Sinu Project

€13452914.8

07/19 - 07/19

Completed

This project is part of

General

 The proposed IFC investment consists of a $15 million loan to Reforestadora de Sinu S.A. Sucursal Colombia (Sinu or the Company) to establish about 5,700 ha of eucalyptus plantations and maintain farms already planted in the Antioquia and Cordoba departments of Colombia (the Project).  The Company started pilot tree plantings in 2013.  In its first five years of planting, Sinu established roughly 4,800 ha plantations and conservation areas clustered in a region of sparsely populated and degraded pasturelands. Sinu aims to reach a total planted area of 10,500 ha by 2021, managing the plantations on a 7-year harvest cycle in conformity with the Forest Stewardship Council (FSC) Principles and Criteria and is committed to meeting IFCs Performance Standards.                             

Objectives

Environmental and/or Social (E&S): IFC anticipates the Project will generate several important positive impacts on the environment. - GHG emissions: This sustainable forest management Project will implement carbon sequestration activities that result in significant GHG emission reductions at an average of 155,000 tons CO2eq per year (negative net emissions) and zero gross GHG emissions. - Climate Resilience: As part of its operations and with IFC's support, the Project will contribute toward strengthening climate resilience in the area. This entails employing techniques such as the use of meteorological information, identification of drought and wind-resistant planting material, silviculture to improve moisture retention, and further enhancing Sinu's fire management practices. - Sustainable Land Management: The Project will make a contribution toward sustainable land management in an area characterized by extensive agriculture, land degradation from cattle ranching. Stakeholder impact: IFC anticipates that the Project will strongly contribute to the development of employment and economic activity in the area, improving resilience and stability in a post-conflict region which can be considered a frontier. Formal employment opportunities are scarce and large companies are absent in the area, apart from Sinu which represents the only formal employment option outside subsistence agriculture. The development of competitive agriculture and agribusiness sector is central to Colombia's overall efforts to diversify its economy.