Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- EcoPlanet Bamboo South Africa
- Project ID
- Fiscal year
- Guarantee holder
EcoPlanet Bamboo Group, LLC
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- July 15, 2014
- Projected Board date
- August 21, 2014
- Gross exposure
- $8.8 million
- Project type
This summary covers an investment by EcoPlanet Bamboo Group, LLC of the United States in EcoPlanet Bamboo South Africa. The investor has applied for a MIGA guarantee of $8.8 million for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project consists of the purchase and conversion of degraded land in South Africa into functioning bamboo plantations for the production of activated carbon and bio-charcoal for sale. EcoPlanet Bamboo South Africa plans to sell 100 percent of its production to its affiliate, EcoPlanet CoreCarbon, LLC, which will sell the finished product to the local and export markets.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. The project will consist of the creation of a bamboo plantation of approximately 485 hectares of degraded forestry land at two contiguous sites. The risks are related to potential pollution resulting from the use of agrochemicals and liquid and solid waste, and social issues related to the health and safety of workers and communities in and around the project site, including increased traffic and the use of security guards. As the farm will be supplying bamboo to the green- charcoal processing facility, the impacts of this facility will also be considered. These include liquid and solid waste management, as well as air pollution, and workers’ and communities’ health and safety. The client has strict environmental and social policies in place and will develop an environmental and social management plan for the project. The client has several years of experience growing bamboo in Nicaragua and has demonstrated strong capacity to manage its environmental and social impacts appropriately. Detailed environmental and social information related to the project is available here.
The project’s main development objective is to support agricultural development in the Eastern Cape region through the introduction of best practices in agricultural, environmental, and social management. The project is also expected to benefit the local economy through job creation, skills enhancement, and increased participation of local actors in the supply chain.
The project is aligned with the World Bank Group’s Country Partnership Strategy for South Africa, which supports better targeting and assistance to small and medium enterprises and foreign direct investment, including in the agribusiness sector.
MIGA’s proposed guarantee would be underwritten through MIGA’s Small Investment Program.