MLR Forestal is a Nicaraguan company interested in a pre-feasibility study that will allow it to determine whether or not to utilize wood and plant wastes from company lands to fuel an energy generation project in Siuna. IFC's involvement in this phase of the MLR project in and of itself, will not generate any development impact. It will however, provide results that may allow the client to expand and improve its reforestation effort in the Northern Autonomous Atlantic Region of Nicaragua (RAAN for its initials in Spanish), possibly as part of an energy project that would reduce the town of Siuna's reliance on fossil fuels for its energy needs (diesel is currently shipped to Siuna and burned to provide energy). Assuming that the result of the analysis is a positive recommendation to proceed with the cogeneration plant and that MLR does indeed develop the same, utilization of the recommendations provided by IFC would ultimately increase the likelihood of a successful, environmentally sound, wood and plant-based energy project that would positively affect many farmers and communities in the RAAN by establishing the business case for reforesting degraded lands, reducing emissions leading to climate change, and by protecting standing forests with carbon stocks from conversion to non-forest uses. The amount of direct jobs generated by a successful plantation-manufacturing-energy enterprise will also be high (the company currently reaches a peak of 500 employees without any manufacturing or energy-related activities, and only 1,700 ha; whereas it will grow to > 10,000 ha)

Indicator	Calendar Year 2020 Results	Cumulative Results as of 2020
Number of entities receiving advisory services	Not Available	1
Number of reports (assessments, surveys, manuals, Phase I/strategic option reports, research, analytical, evaluations, etc.) completed	Not Available	8
Number of entities that implemented recommended changes	Not Available	1

Performance Standard	Description and Potential Impact	Mitigation
PS 1. Assessment and Management of Environmental and Social Risks and Impacts	Initial Disclosure: As part of its Due Diligence, and as mandated by IFC's Sustainability Policy, IFC team has screened this project to assess consistency with IFC's Performance Standards. Given that the project is essentially an analysis of technical aspects related to a biomass energy project , the possibility of issues related to Environmental and Social risks is extremely low.	IFC's advice will be provided in a manner consistent with the principles of the relevant Performance Standards. where related to the IFC technical analysis. The IFC team will assist the client, as the final decision maker, in gaining a good understanding of IFC's Performance Standards.