Reforestadora del Sinú aims reforestation and to sustainably supply more than 250,000 tonnes of woodchip to the cellulose and paper market in Asia and Europe

IFC

Image: Eucalyptus plantations of Reforestadora del Sinú in Colombia. Photo: Courtesy of Sinú SC Reforester.

International Finance Corporation (IFC) has agreed to provide $15m (£12.3m) loan to Columbian forestry company Reforestadora del Sinú, focused on developing eucalyptus plantations.

Considered to be the first of its kind to be approved by IFC in Colombia, the loan is expected to help Reforestadora del Sinú to generate employment while promoting development in the Urabá region.

The region has suffered significant social and financial costs resulting from an armed conflict that displaced more than 20,000 people in 2015.

Reforestadora del Sinú claims to have established 5,500 hectares of plantations and to protect the environment, has also established 1,100 hectares of biological corridors and conservation areas.

The project can help in reducing up to 500,000 tonnes of CO2 emissions annually

The Colombian forestry company aims to become the first company to export fibre to the cellulose and paper market in Asia and Europe. Its goal is to plant 10,500 hectares by 2021, which will support in exporting up to 250,000 tonnes of woodchip, while contributing towards the capture of up to 500,000 tonnes of CO2, annually.

IFC Andean region acting manager Juan Gonzalo Flores said: “Development of the rural and forestry sector in Colombia is fundamental for the future and wellbeing of the country.

“This project shows IFC’s commitment to supporting the sustainable development of Colombia and we are very pleased with this partnership with Reforestadora del Sinú.”

Reforestadora del Sinú’s forestry project began after being invited by the Colombian Government to invest in the forestry sector. The company began its activities in 2010 in the City of Montería – Córdoba. The forestry project is located on the Colombian Caribbean coast, in the department of Antioquia and Córdoba.

The company has developed the nursery La Ribera in 2012, in an area of 10 hectares, located in Jaraquiel district. It has propagated several foreign and native forest species in the nursery intending to produce plant material of high-quality for reforestation.

In the last decade, the company claims to have invested up to $1.5bn in sustainable forestry projects including production of paper, cardboard, wood, and cellulose processing.