Burapha: A loan to support a responsible plantation forestry player in Laos

Burapha is a forestry company based in the Vientiane region in Laos. It is specialized in planting eucalyptus and processing and marketing tropical timber. The company, which is committed to respecting the highest responsible and sustainable forestry standards, stands out for being the only forestry company in the country to be FSC (Forest Stewardship Council) certified for its plantations and wood processing plants. Burapha has developed an inclusive agroforestry model, including local communities in the creation and maintenance of plantations.

In October 2018, the company received the Asean Golden Agrow Award in recognition of its positive impacts on local communities and the environment.

This operation will allow Burapha to double the surface area of its plantations, from 3,500 to 7,000 hectares, and to build a plant for high-quality plywood, mainly for export. Burapha is also supported by our Dutch (FMO) and Finnish (Finnfund) counterparts, which have each contributed USD 10m for the company’s development. 

This project is developing an innovative agroforestry model which contributes to:

• creating jobs and improving incomes for local communities: inclusion of local communities, thanks to an inclusive agroforestry model in which local villagers are employed and trained by Burapha for the creation and maintenance of eucalyptus plantations. Villagers also have the possibility of planting their own rice between the eucalyptus seedlings during the first 2 years of growth. It is estimated that their incomes are 2 to 3 times higher than if they did not work with the company;
• fighting against climate change, with plantations on degraded land. Indeed, it is expected that some 2 million tons of CO² will be sequestered by Burapha’s plantations throughout the project life; 
• developing a responsible investment model in the forestry sector (FSC certification), promoted by international donors and local authorities.