Development of a Decision-Making Support Tool for Banks Investing in Forest Plantations... Tender

Procurement Summary

Country : Paraguay

Summary : Development of a Decision-Making Support Tool for Banks Investing in Forest Plantations in Paraguay

Deadline : 20 Mar 2025

Other Information

Notice Type : Tender

TOT Ref.No.: 115713288

Document Ref. No. : 0002014481

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Paraguay has become a favorable destination for foreigndirect investments (FDIs) due to its political and economic stability, achieving the largest economic growth in Latin America and an investment-gradesovereign rating. However, this growth has led to significant forest loss, impacting ecosystem services and incurring economic costs. The Oriental Regionhas seen extensive deforestation, primarily for high-productivity soy and maizecrops and cattle ranching, resulting in land degradation and poverty due touneconomical farms.Deforestation in the Oriental Region mostly occurred beforethe 2000s, leaving less than 10% of native forest in fragmented patches.Illegal logging persists due to subsistence farming, illicit crops, and landgrabbing, while fuelwood extraction continues to degrade forests. Fuelwoodconstitutes 80% of the energy mix for Paraguay-s industries, with only 36%being sustainably sourced. Export industries increasingly require certifiedfuelwood to meet high-value market standards.The government launched "Paraguay Forestal para ElMundo" in 2023 to attract investment in forestry and create jobs. Thisinitiative has two components: showcasing forestry potential to foreigninvestors and positioning forestry value chains for exports. The World Bank andParaguay-s Development Finance Agency (AFD) are preparing a new investmentoperation (P504535) to address the lack of long-term funding for sustainableforestry.Local banks are interested in financing eucalyptusplantations if they have access to long-term funding and can assess creditrisks related to environmental and social issues. INFONA has launched a digitalplatform, Visor de Inversión Forestal, to support sustainable forest managementand published a report identifying areas with high potential for tree farms.The World Bank has also developed an AI-powered Geospatial ESF Risk AssessmentToolkit to support risk assessment, though it is not publicly accessible. Thepurpose of this request for offers is developing simila...

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