Pre-investment Technical Assistance by LDN TAF
Country:
Colombia
Sector:
Timber
Business model
Forest First Colombia’s business model is based on planting, growing and harvesting trees and processing of timber. Additional revenues are expected to be generated through sale of carbon credits. The implementation of proper planting and maintenance practices that are increasing soil organic matter and improving water infiltration are only using 60% – 70% of total area, while 20% – 30% of total area is dedicated to conservation of environmentally sensitive areas for natural habitat, in a mosaic approach
Investment need
Forest First Colombia (FFC) is currently seeking investment to expand its planting activities, for the construction of value-add processing facilities and for improving the local infrastructure.
Technical assistance
- Scoping the potential to aggregating FFC’s existing initiatives and ambitious future plans in a structured ‘landscape approach’ aimed at maximizing environmental and social impact also beyond the boundaries of FFC’s operations.
- Technical appraisal: feasibility and potential risks that could hamper and/or prevent the transportation; export and import competitiveness of the company’s products; review of key aspects of FFC’s plantation (biomass growth assumptions, etc.). The LDN Fund is co-financing this technical component together with other potential investors.
Technical assistance support from the LDN TAF does not constitute a commitment from the LDN Fund, or Mirova, to finance directly or indirectly the project described above. Any such commitment shall be subject to inter alia, a detailed technical, financial and legal due diligence of the company and the project, as well as all required LDN Fund investment committee approvals and satisfactory documentation.
