Paracel Paraguay advances forest industrial hub following US$165 million financing from BID Invest
The financing will support the development of strategic infrastructure to strengthen the forest value chain and advance a future pulp mill project in northern Paraguay
BID Invest has approved financing of up to US$165 million for Paracel to support the development of a sustainable forest industrial hub in Paraguay, a project aimed at strengthening the country’s forest value chain and enabling the development of a future pulp mill.
The financing will primarily support the construction of essential infrastructure, considered a key step in creating the conditions necessary for industrial development and the expansion of new activities related to the wood sector.
The operation was announced during the Annual Meetings of the IDB Group in Asunción and combines BID Invest’s own resources with capital mobilized from third parties, reflecting international investor interest in the project.
According to Ilan Goldfajn, president of the Inter-American Development Bank Group, projects such as Paracel demonstrate the potential of the private sector to drive economic growth, job creation, and regional development in Paraguay.
Meanwhile, James Scriven, CEO of BID Invest, noted that the financing will contribute to the development of key infrastructure for the forest industrial hub and help mobilize private capital toward one of the most significant industrial investments in the country’s history.
From the company’s perspective, Per Olofsson, chairman of Paracel, stated that the approval of the financing represents a major milestone for advancing the development of the future pulp mill and strengthening Paraguay’s forest value chain. The company has already established a competitive and internationally certified forest base with more than 90 million trees planted.
The project includes the construction of strategic assets, such as a river port and terminal, power transmission lines, access roads, and logistics infrastructure. These investments are expected to improve regional connectivity, reduce logistics costs, and facilitate the installation of new industrial activities linked to the forest sector.
The industrial hub will be located in the Concepción department in northern Paraguay, a region with strong productive potential and abundant forest resources. The initiative will leverage the country’s competitive advantages, including access to renewable energy, competitive logistics, and a Free Zone regime, to strengthen Paraguay’s forest sector competitiveness in regional and international markets.
The operation also includes support from BID Invest through an Environmental and Social Action Plan, along with initiatives aimed at institutional strengthening, energy efficiency, and project resilience, aligned with international sustainability standards.
The development of the project is expected to generate approximately 7,000 direct and indirect jobs, contributing to economic growth and industrial development in northern Paraguay.
