Klabin II (IDBI-11984-02)

Countries
  • Brazil
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 14, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Klabin S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Construction
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS May 29, 2019


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Project Description

The Project will support Klabin S.A. (Klabin or Company) growth strategy for the following period (2019-2023). The investment plan consists in the construction of two new manufacturing lines which are going to produce kraftliner paper, including a new integrated pulp facility to supply both paper machines.

People Affected By This Project

This Project has been provisionally classified as a Category B project, pursuant to the IDB Invest Environmental and Social Sustainability Policy. The key potential negative Environmental, Social, Health & Safety (ESH&S) risks and impacts associated with the construction phase of the Project related to: (i) the influx of temporary workers; (ii) increase in traffic on local roadways generated by construction vehicles; (iii) air and dust emissions; (iv) noise; (v) generation of wastewater and solid waste; (vi) handling of hazardous waste; (vii) lack of capacity of municipalities to absorb and manage the additional pressure on social and physical infrastructure; and (viii) presence of indigenous communities in the Project's area of indirect influence. During the operations phase, the key negative ESH&S risks and impacts relate to: (i) potential conversion of natural habitat for establishment of plantation forests; ii) incremental on atmospheric, water and solid waste emissions; (ii) incremental increase in traffic on local roadways generated by vehicles transporting timber and supplies; (iii) expectations from the communities in terms of continuing employment, and from municipalities for continued support by the company; (iv) lack of urban planning to guide the induction of urban sprawl associated with the expanded plant and lack of municipal capacity to manage a rapidly changing socioeconomic environment.

Relative to mitigation of environmental impacts and risks associated with the industrial process, Klabin is heavily engaged in the adoption of BAT (Best Available Technologies - BAT) and BPEM (Best Environmental Management Practices-BPEM), aiming to reduce air emissions, liquid effluents, noise and solid waste generated by their activities. The new plant expansion will be equipped with the latest generation of industrial processes and will continue to be highly efficient. The Company regularly monitors both air quality and water quality (of the Tibagi River) for its existing planta at Telemaco Borba and Ortigueira as part of its environmental commitment and licensing obligations. The existing plant at Ortigueira has been supervised by an independent E&S consultant team (Arcadis) with periodic progress monitoring reports to IDB Invest, which have to date verified Klabin's adequate management of the key risks.

The Environmental Assessment Analysis for the expansion phase lists a series of E&S management programs that have been incorporated in the design of the (Puma II) Project to avoid, mitigate, compensate and/or monitor the above-mentioned impacts and risks.

An ESH&S appraisal of the Project will be carried out, and an Environmental and Social Review Summary (ESRS), containing and Environmental & Social Action Plan (ESAP), will be prepared and published on the IDB Invest website ahead of project consideration for approval.

Investment Description
  • IDB Invest
Contact Information

Gustavo Rocha Garcia
Treasurer
Phone # +55 (11) 3046-8437
E-mail:
gustavo.garcia@klabin.com.br