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Vale do Parana SA
Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number 25008
Company nameVale do Parana
Country
Brazil
Sector1Sugar and Confectionery
Environmental categoryB
Department
StatusActive
Date SPI disclosedSeptember 20, 2006
Projected board dateOctober 23, 2006
Previous EventsInvested: April 6, 2007
Signed: February 13, 2007
Approved: January 17, 2007
View Environmental & Social Review Summary (ESRS), click here
click here
  Overview     Sponsor/Cost/Location     Development Impact     Contacts     Attachments  

Project description
Vale do Parana SA (Vale do Parana or the company) is a special purpose company established in Brazil to grow sugar cane, construct, and operate a state-of-the-art mill to produce fuel ethanol and sugar in Suzanapolis, western region of the State of Sao Paulo, Brazil. The mill will be developed in phases starting in 2008, when it will produce approximately 70,000 m3 of ethanol, until 2011, when it will produce approximately 90,000 m3 of ethanol (for the internal market) and 140,000 mt of raw sugar for the export market. Upon full implementation, Vale do Parana will have a total milling capacity of 2 million mt of cane/year supplied from 22,000 ha of sugar cane, 50% of which will be cultivated on leased land with the remainder sourced from dedicated third-party suppliers.

The project will take advantage of:


- favorable export market conditions created by the reform of EU’s sugar policies;
- increased demand for fuel ethanol, mainly in the Brazilian market, but also of prospects for increasing international demand;
- sponsors experience in operating sugar/ethanol mills in Brazil and other countries in Latin America; and
- the agronomic and infrastructure environment that allows mills in this region of Brazil to be the world’s lowest cost producers.

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