•The agreement marks the first step toward financing the project, which would enable the construction of key infrastructure for the new industrial hub, attracting investment and generating jobs in the north of the country.

ASUNCIÓN, Paraguay – IDB Invest has signed a mandate with Paracel S.A., a leading company in Paraguay’s forestry sector, for the development of a comprehensive industrial hub aimed at consolidating the wood value chain and laying the groundwork for a future expansion of its pulp mill in Concepción.

The project under evaluation includes the construction of essential infrastructure like a transmission line, a private river port, and other works that would attract new industries linked to the sector. The location seeks to capitalize on strategic advantages such as the abundance of forest resources, access to renewable energy, the Free Trade Zone, and competitive logistics. 

This investment would represent a strategic boost for accelerating the economic development of northern Paraguay by promoting industrial diversification and creating an estimated 7,000 direct and indirect jobs. The project would strengthen the competitiveness of the forestry sector and attract new industries to the area such as biofuels, textiles and cardboard, MDF boards, biochar, metallurgical biocarbon, and sustainable chemicals. It would also consolidate Paraguay’s position as a regional leader in renewable agroforestry. 

Long-term financing is currently under review by IDB Invest and subject to the institution’s corresponding approvals. The financing arrangement would include the mobilization of additional resources from international commercial banks and development finance institutions, as part of IDB Invest’s strategy to attract more private capital to development projects in Paraguay and the region. 

IDB Invest is also exploring the provision of technical assistance to strengthen compliance with high-level environmental and social standards. The parties are also exploring opportunities for cooperation through advisory services and blended finance, focusing on energy efficiency, cogeneration, and resilience.

About IDB Invest 

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.

About Paracel

Paracel is Paraguay’s first forestry pulp company, created to generate a positive impact on society and foster the demand for biodegradable products. This Paraguayan company, the largest private venture in the country’s history, owns 199,000 hectares of land. It is led by three companies: Grupo Zapag, Heinzel Holding GmbH, and Girindus Investments, all committed to sustainable development and the creation of social, economic, and environmental value. Visit our website: https://www.paracel.com.py/