IFC Is Receiving Feedback from Stakeholders on the Cumulative Impact Study (CIS) of Pulp Mills on the Rio Uruguay

Washington, DC, January 20, 2006. -. The International Finance Corporation (IFC) is continuing the consultation process on the draft cumulative environmental and social impact study (CIS) on two proposed pulp mill plants on the Rio Uruguay. Consistent with IFC’s policy on public disclosure and consultation, the Corporation will undertake several meetings with a number of stakeholders in Uruguay and Argentina next week, as was indicated in December when the CIS was launched. Additional meetings will follow.

IFC, the private sector arm of the World Bank Group, commissioned the CIS as part of the evaluation process to determine whether to provide financing to the Orion and CMB pulp mill plants in Uruguay. In addition, the Multilateral Investment Guarantee Agency (MIGA), also a member of the World Bank Group, is evaluating whether to provide political risk insurance to the Orion plant.

IFC is committed to undertake a fair and open consultation process that provides stakeholders with the opportunity to provide feedback on the CIS. IFC has been receiving feedback from interested parties in Uruguay and Argentina.

The World Bank Group acknowledges the substantive comments that have been received from the government of Argentina. IFC will carefully review them along with other feedback provided by stakeholders, as well as the reports to be issued by the bi-national technical commission established by the governments of Uruguay and Argentina.

The Cumulative Impact Study and the Consultation Process
The CIS was released on December 19, 2005, in draft form, opening a consultation period to receive feedback from interested parties on the study's scope, methodology, and findings. The consultation process will help determine whether there are any gaps in the analysis undertaken to date and whether any additional modification of the study may be required as a result. All comments will be carefully reviewed by an expert panel specifically set up for this purpose. All comments and written material provided will become a part of the public record and will influence IFC and MIGA decision-making.

Neither IFC nor MIGA will make a decision on whether to proceed with funding or guarantees until the consultation process is completed.

The Online Feedback Option
In order to facilitate feedback on the CIS from the public and interested parties, IFC has also opened an online submission mechanism via the Internet. The public and interested parties can submit comments, analysis, and feedback on the CIS at the following Web address: http://www.ifc.org/ifcext/lac.nsf/content/Uruguay_Pulp_Mills.

For more details on the consultation process and to obtain the full text of the draft CIS, in English and Spanish, please visit: http://www.ifc.org/ifcext/lac.nsf/content/Uruguay_Pulp_Mills.