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Forestal San Pedro Environmental and Social Impact Assessment Project Forestal San Pedro

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Forestal San Pedro Environmental and Social Impact Assessment Project Forestal San Pedro Project Forestal San Pedro Environmental and Social Impact Assessment Project Forestal San Pedro Executive Summary The company Forestal San Pedro was created in 2020 and aims to manage 8,000 ha of forest plantations and timber industrial development within the framework of the San Pedro Forest Project (FSP). The project will cover plantations in the department of San Pedro, west of the department of Canindeyú, south of the department of Concepción and north of Caaguazú. The company is in the process of acquiring 6,270 ha of eucalyptus plantations, which were planted between 2014 and 2020, currently located within the departments of San Pedro and Canindeyú. This area consists of stands of pure and silvopastoral plantations. It is foreseen to establish another 1,730 ha to reach the target. The Forest Management Units (FMUs) to be acquired for the FSP Project in Paraguay are timber plantations that have and will continue to have social and environmental management systems based on environmental, social and governance policies that are aligned with all the principles and criteria of Forest Stewardship Council (FSC) certification and the Environmental and Social Performance Standards of the International Finance Corporation. Being certified by the FSC demonstrates that forest plantations meet the highest social and environmental standards on the market (FSC 2020). The operations of the FSP Project will be carried out by UNIQUE Wood Paraguay SA, a company founded in 2001 that is part of the UNIQUE Group, and whose objective is the valorization of the forest resource through the development and implementation of profitable models of forest production, which generate positive social and environmental impacts (UNIQUE Wood 2018). Sustainable development encompasses environmental, social and economic aspects. The FSP Project requires to formalize the ownership of forest plantations within the framework of Law No. 4890/15 - REAL PROPERTY RIGHT OF FOREST AREA, where forest plantations are registered for development with the requirement of compliance with all environmental laws governing the matter. For this reason, each owner who assigns the DRSF to the FSP project must necessarily have an environmental license at least. In addition, as Paraguay ratifies all ILO (International Labour Organization) conventions, the FSP Project only works with contractors who comply with labour laws. To ensure compliance with environmental and social aspects, monitoring plans are implemented with a system of continuous communication with contractors, subcontracted workers and surrounding communities. 2 Project Forestal San Pedro Environmental and Social Impact Assessment Report Client: Forestal San Pedro Author: GEOCONSULTORES 12 November 2020 3 Project Forestal San Pedro Content Executive Summary ....................................................................................................................... 2 Company Information ................................................................................................................... 6 Project Description ........................................................................................................................ 8 Location ..................................................................................................................................... 8 Definition of FSP Project actions ............................................................................................... 9 Plantation Calendar ................................................................................................................. 12 Forest Management Units Identified ...................................................................................... 12 FSC Certification (Forest Stewardship Council) ....................................................................... 16 Environmental and Social Procedures .................................................................................... 17 Analysis of Legal Requirements................................................................................................... 21 The 1992 National Constitution .............................................................................................. 21 Paraguay’s National Environmental Policy (PAN) ................................................................... 22 Major Environmental and Social Laws .................................................................................... 22 Regulatory decrees .................................................................................................................. 27 Resolutions .............................................................................................................................. 29 Environmental License - the Environmental Impact Assessment process in Paraguay .......... 31 Baseline ....................................................................................................................................... 33 Climate .................................................................................................................................... 33 Hydrology ................................................................................................................................ 40 Soils ......................................................................................................................................... 40 Ecoregions ............................................................................................................................... 44 Vegetation in the Area of Influence of identified FMUs ......................................................... 51 Biodiversity in the Area of Influence of identified FMUs ........................................................ 54 Protected Wilderness Areas .................................................................................................... 55 Analysis and Description of the Socio-Economic Aspect ........................................................ 62 Communities adjacent to the Influence Area of FMUs identified .......................................... 65 Indigenous Communities......................................................................................................... 68 Environmental and Social Impact Study ...................................................................................... 71 Methodology for the Environmental and Social Impact Study ............................................... 71 Identification and valorization of potential impacts of the FSP Project ................................. 75 Environmental and Socioeconomic Impact and Risk Management Plan .................................... 81 Socio-Economic Impact and Risk Management Plan .............................................................. 81 Fire Impact and Risk Management Plan .................................................................................. 86 Environmental Impact and Risk Management Plan ................................................................ 87 Associated Activity Impact and Risk Management Plan ......................................................... 94 4 Project Forestal San Pedro Environmental and Social Management Plan implemented in the identified FMUs .................. 96 Audit .......................................................................................................................................... 102 Consultations ............................................................................................................................. 113 Bibliography .............................................................................................................................. 114 Annexes ..................................................................................................................................... 116 5 Project Forestal San Pedro Company Information The company San Pedro Forestal was created in 2020 and aims to manage forest plantations and timber industrial development within the framework of the Forestal San Pedro (FSP) Project. The project will cover plantations mainly in the department of San Pedro, also considering to the west of the department of Canindeyú, south of the department of Concepción and north of the department of Caaguazú. The company seeks to develop plantations on land of previous agricultural use, leased to its owners. The project aims to reach about 8,000 ha. Eucalyptus forest plantations aged between 0-6 years have been identified and the company is in the process of acquiring 6,270 ha over leased land consisting of stands of pure and silvopastoral plantations. The company plans to identify another 1,730 ha to reach the target area. In addition, it foresees the development of an industry to process such wood, initially planned as a sawmill that could be modified according to market needs. The operations of the FSP Project are carried out by UNIQUE Wood Paraguay SA, a company founded in 2001 that is part of the UNIQUE Group, and whose objective is the valorization of the forest resource through the development and implementation of profitable models of forest production, which generate positive social and environmental impacts (UNIQUE Wood 2018). 6 Project Forestal San Pedro The investor of the FSP Project is the Arbaro Fund, a private equity fund based in Luxembourg that already implements sustainable forestry projects in different countries and now in Paraguay where biophysical growth conditions are ideal.
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