IFC supports sustainable forestry management with financing and advisory services for SLV Bolivia
IFC, a member of the World Bank Group, will provide a $6 million loan and advisory services to veneer and plywood producer SLV Bolivia to support a business model that sources wood from sustainably managed natural forests and strengthens indigenous community enterprises.
IFC Advisory Services will support SLV Bolivia to plan an effective community engagement strategy and group certification model. IFC’s integrated approach of long-term financing and advisory services will help SLV Bolivia to increase plant capacity and efficiency, as well as to build market linkages with global players seeking wood products certified by the Forest Stewardship Council. The project also aims to create incentives for preserving natural forests.
"SLV is very pleased to have IFC's financial and technical support to help us implement very challenging environmental and social standards in this innovative project, benefiting the local communities," said Luis Prudencio, General Manager of SLV.
IFC strategy in the Amazon region, where SLV sources the wood, aims to help communities improve sustainable forest management, attain Forest Stewardship Council certification to access new markets, and build basic business and social management skills. IFC’s support to SLV Bolivia will help support the new needs created by the structural changes in the forestry sector in Bolivia, where government support has shifted from long-established private industrial concessions to direct management by
“This project builds on Bolivia's competitive advantages and promotes sustainable management of the supply chain, starting with the forest and continuing throughout the downstream industry,” said Oscar Chemerinski, IFC Director of Manufacturing, Agribusiness & Services Department, Sub-Saharan
Africa, Latin America & the Caribbean. “We are pleased to support an innovative business model based on a mutually beneficial partnership between indigenous communities managing the forest and a domestic, export-oriented manufacturing firm.”
In this project, IFC will play an important role in helping to preserve natural forests by promoting responsible forest management and certification through developing a sustainable community business model where companies demand certified wood and are willing to support communities to do sustainable management forestry.