Proparco, a subsidiary of the French Development Agency (AFD) has announced that it has granted a US$10 million loan to Burapha, a Lao-Swedish plantation and wood products manufacturing company. This operation will allow Burapha to double the area of its plantations in Laos from 3 500 to 7 000 hectares (ha) and to build a quality plywood mill.
According to a statement, Burapha is also supported by the Dutch counterpart FMO, who structured the operation on this project, and Finnish counterpart Finnfund, who each contributed US$10 million to the company’s development.
A major environmental and social impact
This new agroforestry project supported by Proparco will have a major positive impact in a degraded local environment. 2.1 million tonnes of carbon dioxide (CO2) is expected to be sequestered by the Burapha plantations over the entire life of the project.
The company, which is committed to implementing the highest standards of the forestry industry, is also the only forest company in the country to be Forest Stewardship Council (FSC) certified for its plantations and wood processing plants.
Burapha has developed an inclusive agroforestry model, integrating local populations into the development of plantations. This project will therefore also result in job creation and improved income for local populations.
In October 2018, the company received the Asean Agrow Golden Award for its positive impact on local communities and the environment.
