Contacts: In Buenos Aires: Yanina Budkin (54-11) 4316-9724 ybudkin@worldbank.org In Washington: Gabriela Aguilar (202) 473-6768 gaguilar2@worldbank.org WASHINGTON, March 18, 2007— The World Bank approved today a US$60 million investment loan to improve the sustainable management of forest resources, conserve biodiversity in protected areas and forest landscapes. The project will benefit small producers which will integrate forestry development activities and conservation. The Sustainable Natural Resources Management Project will assist small and medium-scale farmers, land owners and producers to adopt environmentally sustainable forms of forestry and agro forestry, as well as to strengthen conservation in eleven national protected areas. It will also support the development of institutional agreements to enhance the Government’s capacity to manage natural resources in a sustainable way. “The Bank is supporting the government’s efforts to manage natural resources and the environment in a sustainable way. Specifically, the new project aims to establish a platform for actions to address resource depletion in the ‘Bosque Chaqueño’ area, the most threatened eco-region in the country, primarily as a result of the massive industrial-scale clearing for soybean cultivation”, said Pedro Alba, World Bank Country Director for Argentina, Chile, Paraguay and Uruguay. “Deforestation in these areas is often accompanied by detrimental social impacts on the rural poor; who although having historical ties to the land, they often lack formal land titles and, therefore, are highly vulnerable to displacement”, he explained. Natural resources have long been a driving force for the Argentine economy. Yet today, the country is facing some key challenges in the areas of forestry, sustainable land use management, protected area management and biodiversity conservation. For example, 20% of Argentina’s land (60 million ha) are considered to be moderately or severely eroded, and about 1 million hectares of forests have disappeared over the last four years alone. The project has three main components: NativeForestsand Biodiversity. It focuses mainly on the Chaco region to develop a new Native Forests and Biodiversity Project and to support activities to promote the introduction of sustainable management and conservation practices in native forests. Sustainable Plantation Forestry: It will (i) establish institutional and policy frameworks conducive to more sustainable and shared growth in the plantations and agro forestry sector; (ii) raise environmental awareness; and (iii) support the integration of smallholders and small producers into the plantation and agro forestry production cycle while promoting sustainable practices among producers generally. Protected Areas and Conservation Corridors: it will strengthen Administracion de Parques Nacionales capacity to manage existing national protected areas and to set the stage for expanding protection to the insufficiently protected and highly-threatened Chaco ecosystem. The Sector Investment Loan (SIL) from the International Bank for Reconstruction and Development (IBRD) for US$60 million is fixed-spread, has a 10 year maturity and a five year grace period. The project also has US$7 million of complementary funding from Global Environmental Facility. ### For more information on World Bank’s program in Argentina please visit: http://www.bancomundial.org.ar |
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