Burapha Agro-Forestry Co., Ltd
Burapha Agro-Forestry Co., Ltd (Burapha), is an agroforestry and wood processing company operating in the greater Vientiane area in Laos. Burapha has developed forest landscape restoration activities on an area of approximately 6,000 hectares (ha) of private land under various land lease agreements with farmers and village cooperation. It also has operated a sawmill and a furniture factory to process sawn wood products and furniture for the export and Laos domestic market by sourcing wood from its plantations.
Burapha has developed an inclusive agroforestry model, including local communities in its activities in the creation and maintenance of plantations, and is committed to respecting very high responsible and sustainable forestry standards (FSC certified). This innovative model contributes to creating jobs, improving incomes for local communities, fighting against climate change and land degradation, and developing a replicable and sustainable forestry model. Villagers can also intercrop annual crops, improving food security and resilience.
Burapha’s current plan is to scale up its business through (i) the new Production Forestry Area (PFA) concession on a total area of 60,000 ha of the land of the Government of Laos and (ii) the operation of a new plywood mill with a 50,000 m³ annual capacity. To support Burapha’s business expansion plan Burapha sought the financing of US$9.0 million from Land Degradation Neutrality Fund (LDN Fund) and other potential investors to be determined.
LDN Fund has applied for MIGA’s guarantee to cover its equity investment into Burapha against the risk of Expropriation for up to 15 years.
The Project has been categorized as category A under the MIGA’s Policy on Environmental and Social Sustainability. The environmental and social review summary (ESRS) will be disclosed at least 60 days in advance. Click here to view ESRS.
The Project is aligned with the World Bank Group’s Country Partnership Framework (CPF) for FY2017-2021, particularly aligned with the CPF’s objective of “promoting environmental protection and sustainable natural resource management”. The project also aligns with the forthcoming CPF for FY2022-26, particularly the objectives under its third focus area “Sustainable livelihoods though better management of natural resources”.
The Project will contribute to the recovery of the country’s forest area and thus achieve climate mitigation and adaptation benefits through the reduction of the greenhouse gas emissions and soil stabilization, respectively. Emissions from agriculture, land-use change and forestry account for around half of total GHG emissions in Laos and the country is estimated to have lost 3.6 percent of its forest between 2005 and 2015. The expansion of the Burapha plantation will also bring employment opportunities for local population, while the training provided by the company will help employees develop new skills and knowledge. Additional benefits of the Project include the possibility for local communities and individuals to establish their own plantations in collaboration with Burapha, and agricultural development opportunities within Burapha’s plantation, all of which will help to bolster the earning potential of local population.