Klabin II (IDBI-11984-02)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 14, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Klabin S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Industry and Trade
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Apr 2, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a 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
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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

How it works

How it works