Portucel Moz The project is the first phase of an integrated US$2.3 billion plantation forestry, agriculture, pulp and green energy investment in Zambezia and Manica provinces of Mozambique which is being implemented by Portucel Mocambique Ltda (Company).  The first phase aims to test the Companys forestry model by developing up to 40,000 ha of sustainably managed eucalyptus plantations and establishing its operational base in the country in 2014-2016 (Project). IFC is working closely with the Company to provide advisory support at this critical early stage of the Project.    The second commercial phase of the Project will comprise the establishment of commercial scale eucalyptus plantations, roll out of agriculture partnerships and construction of a 1.5 million ton pulp mill and a biomass power generation plant by 2023.    The government has awarded the Company the land use rights to 356,000 hectares of land, roughly two-thirds of which will be used for forestry activities.  Among the development priorities of the Project is improving conditions for agriculture on the remaining land and creating well-functioning agribusiness supply chains to link smallholders with markets. As such, the Project is positioned to become the first integrated eucalyptus plantations, agriculture, pulp and energy project in Mozambique. The objective of the proposed IFC investment is to support the development of this transformational opportunity to help create an inclusive agro-forestry project in Mozambique. Portucel''s investment in the under-developed rural regions of Mozambique lays the foundation for a far greater and expansive development of the regions and of industry over the next 12 years.  While mega-projects in the mining and energy production sectors in Mozambique may be limited in their ability to impact employment creation and productivity spillovers, the Project will create rural jobs and have a significant multiplier effect, thus broadening the economic base of the country.  -	Employment: generating at least 2,000 direct and indirect rural jobs during the first phase and up to 6,500 additional jobs once the second phase has been fully implemented; -	Smallholder Farmers'' Benefits: reaching over 150,000 rural poor, and with complementary public investment by IFC and the World Bank in agriculture and agribusiness development, improving livelihoods for 23,000 farmer households;   -	MSME Development Catalyst: promoting development of an estimated 100 MSMEs as suppliers of goods and services to the company, including through training and outgrower component imbedded in the Company''s business model;  -	Infrastructure Development: developing several types of infrastructure, including secondary and forest roads, and - during the second phase - a port, that will encourage economic integration;  -	Training and Demonstration: encouraging knowledge transfer by providing trainings to local employees, supporting forestry programs in Universities and integrating agriculture extension services to local farmers in the Company''s business model; -	Increasing Country''s Competitiveness through Economic Diversification: Despite the Government''s targets, Mozambique''s forest products sector potential remains unrealized. Successful implementation will encourage additional investment and stimulate forest products sector development, and provide the much-needed diversification to the local economy and additional source of forex earnings to the budget.