Today, on a fully diluted basis, SLV is owned by Ospraie (New York based private equity fund) with 57%; Fernando Campero with 29% (the “Sponsor”); SLV management with 6.0%; and other local investors with 8.0% (no individual shareholder owning more than 5.0% of the shares).

Total Project Cost is estimated at $8.5 million. The proposed IFC investment is up to $6 million C loan for IFC’s own account

6.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.0
Equity

* These investment figures are indicative

SLV is located in the duty free zone of Warnes, Santa Cruz, Bolivia.

IFC involvement with the Company is expected to have a strong development impact in the economy by: i) supporting the development of an export oriented sector with deep roots in the economy and with extensive linkages throughout the value chain; ii) creating additional direct and indirect employment while helping to preserve 140 existing jobs; iii) improving living standards and climate change by promoting sustainable management of natural tropical forest through certification.

IFC involvement will bring to the project the following benefits: i) play demonstration and catalytic role that could be replicated in the industry (stamp of approval); ii) access to long term financing not available for local agribusiness and forestry players in Bolivia; iii) potential advisory service for community engagement; iv) framing of environmental and social improvements through an Environmental & Social Action Plan (ESAP); and v) global industry knowledge in downstream processing industry experience.

This project has been categorized as an “A” project in accordance with IFC’s Environmental and Social Review Procedures. The proposed project involves the harvesting, extraction and processing of wood products from community-managed natural forests in Bolivia’s Guarayos and Chiquitania regions. IFC conducted an extensive appraisal of the proposed project which included interviews with indigenous forestry associations and the Indigenous Territory leaders, government and industry representatives, contractors and suppliers, and local and international conservation NGOs active in Bolivia. IFC reviewed the Company’s management systems, compliance with Applicable Regulations and IFC Performance Standards, and assessed the Company’s ability to meet and assist communities to meet internationally-recognized forestry practices and standards. Environmental and social risks include the sustainability of wood production and potential impacts on biodiversity and ecosystem services, the direct engagement of communities and indigenous peoples, and the occupational health and safety of forestry and processing workforces including direct suppliers. The Company proposes to mitigate such risks through a proactive environment and social management system and adherence to FSC forest management and chain-of-custody standards.