Paracel Pulp Project Faces Allegations of Human Rights Abuses
Paracel is developing Paraguay's largest private investment project amid accusations of water contamination, forced evictions, and the use of banned insecticides.
Paracel, a pulp production joint venture comprising the Zapag group, Heinzel, and Girindus Investments, is constructing a massive eucalyptus plantation and industrial plant in northern Paraguay. Financed by the Inter-American Development Bank and the Paraguayan government, the project is the largest private investment in the country's history.
While the company claims the project fights global heating through reforestation and creates thousands of jobs, investigations have documented accusations of water contamination and forced evictions. Farmers in Puentesiño allege the company occupied land reserved for the poor and used drones to spray unknown substances on residents. Furthermore, reports indicate the use of sulfluramid, an insecticide banned in China and the European Union due to links to cancer.
Indigenous communities, including the Mbya Guaraní and Paĩ Tavyterã, report that Paracel misled them during consultations and ignored their objections. Paracel denies illegal deforestation and maintains its operations meet global sustainability standards, asserting the project has brought "significant contributions to economic, social and environmental development in the area."
