Simplemente Madera Group In September of 2007, Hurricane Felix cut through the northeastern corner of Nicaragua destroying an estimated 500,000 hectares of tropical hardwood forests mostly located in the North Atlantic Autonomous Region (Región Autónoma del Atlántico Norte or RAAN).    The project consists of:   - the acquisition of up to 13,000 hectares of lands affected by the hurricane;  - investments in infrastructure, machinery and equipment needed to conduct salvage logging and wood processing operations, and  - working capital and contingencies.    Hardwoods harvested from these lands will be processed into FSC-certified decking, flooring, doors, furniture, dimensional and structural lumber, and sold on both the domestic and international markets.   Concurrent with the salvage operations, the project envisions replanting select areas with native hardwood species common to the region, while setting aside areas for natural re-growth.   Reforestation will ensure the return of forest cover on the lands involved in the project and ensure consistent and sustainable supply of wood for the companys sawmilling and furniture operations.    The project will be implemented by Maderas Preciosas Indígenas e Industriales de Nicaragua S.A (MAPIINICSA or the company), a local timber processing and wood products manufacturing company, and Exchange S.A., a fine furniture manufacturing and architectural design company, that will form the Simplemente Madera Group (SMG). Development of Nicaraguas Forest Products Sector:  Production from the project will help address the deficit of construction timber in Nicaragua and in the region.  Increasing the supply of legally harvested wood will also encourage development of Nicaraguas downstream capacity in the furniture and other wood processing industries. In addition, the project could serve as a model for private and public involvement in sustainable development of the hurricane affected lands.    Job Creation:  The project will create 400 additional permanent jobs. Most of the employment opportunities are expected to be in RAAN, where the unemployment rate is higher than in the rest of the country. The project will also continue to support indirect employment through outsourcing of the companys trucking and furniture manufacturing to independent small businesses that employ an aggregate of 100 people.    Positive Impact on Climate Change:  The project will have a significant impact on global climate change.  Processing the downed trees into lumber will achieve the carbon sequestration for the life of the manufactured products, as opposed to leaving the trees on the ground to decompose and emit greenhouse gases, such as methane and CO2.  Reforestation will also contribute to carbon sequestration and maintaining healthy tropical ecosystems.  The project will help prevent deforestation of the hurricane affected area by establishing plantations and setting aside areas for natural forest re-growth, rather than being converted into agricultural use or cattle farming lands.  The positive impact of the Project on the environment could be further increased if a future investment in a cogeneration power plant proves feasible.  Community Engagement:  The project will have a significant beneficial impact on local RAAN communities as it is the companys practice to allow the local community to benefit from company infrastructure, such as access roads, and provisions such as food, fuel, etc which are made available to them at cost.  The sponsor has already demonstrated their interest in working with indigenous communities through their work with the Layasiksa, a local community.    Impact on Local Economy:  The project will help increase and diversify Nicaraguas exports and generate much needed foreign exchange.  The project will also produce significant tax revenues for the local government.