ndex - REDD-Monitor€¦ · Guadua angustifolia Bamboo The bamboo specie we are using is Guadua, a...

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I n t r o d u c t i o n

w h a t i s c o m m e r c i a l b a m b o o

g u a d u a a n g u s t i f o l i a b a m b o o

w h y b a m b o o

w h y n i c a r a g u a

w h y e c o b a m b o o l o t

e c o b a m b o o l o t o p e n s f l o o r i n g f a c t o r y

y a e r l y h a r v e s t p r o j e c t i o n s

r e t u r n s a f t e r f e e s

p u r c h a s e a b a m b o o l o t

p r o p e r t y o n y o u r p r i v a t e n a m e o r c o r p o r a t i o n

t h e r a u l a r a n a c a s t e l l ó n g r u p

b a m b o o p l a n t a t i o n r i s k s

t h e f o u n d e r s

(505) 8933-1674 · [email protected] · www.ecobamboolot.com

A RARE opportunity to purchase a Deeded Bamboo Lot in Central America

- Yearly harvest revenues during 30+ years -

- No Land Lease or Bond -

- You will be 100% owner of the land. -

- Property Title: Freehold -

- Hands free, passive income investment -

- 1/4 hectare (0,6 acre) lot, US$ 9.000 -

- Average ROI 26% per year -

United Nations: “The past 20 years, bamboo

has developed as an exceptionally-valuable and

often superior substitute for wood. Bamboo may replace

wood in many industrial applications and thereby contribute to

the saving and restoration of the world’s forests”

Bamboo is the fastest growing land plant in the world. Whereas a hardwood tree grows in the rain forests might take 35 years to grow to a harvestable size, a bamboo culm (pole) can grow to a full height within 6 months.

A portion of the bamboo plant is harvested yearly. The life cyclus of a bamboo plantation is 30+ years.

A 1/4 of a hectare bamboo lot can pro-duce every year around 500 commercial culms or poles of 15+ meters (49 feet)

With its exceptional green credentials and high productivity, bamboo is set to be-

come the sustainable timber source of the future.

On top of its economic opportunity, bamboo is simply the best source of timber for the planet. It sequesters four times more carbon dioxide than other timber during a relatively short time period. . (Yipping et al 2010)


Global demand for certified timber is fast growing What is commercial bamboo

China is one of the biggest con-sumer and producer of bamboo poles, the U.S is the biggest importer of bamboo products. The domestic demand for bamboo in China has grown to such an extent that a moratorium on its export has been proposed. Nicaragua has signed a free trade agreement with the USA, in other words USA importers of bamboo products like flooring and furniture don’t pay import tax for Nicaraguan products, leaving Chi-na behind as competitor. Also the transport costs from Nicaragua to the U.S are cheaper. From Chi-na to the USA are 31 days boat days, from Nicaragua to the U.S just 3 days.

The EU’s ban on illegally sourced timber which begins in 2013 will re-move about 30% of the existing market for timber supplies. This ever growing trend toward sustainable timber combined with the specific supply events on the horizon mean that demand from the USA and EU for certified, non-Chinese bamboo is set upon a steep trajectory.

By fortune increasingly stringent im-port laws will force developing coun-tries to bring an end to illegal logging, and the protection of natural forests is improving, the price of timber from sustainable sources will rise. Did you know that in Nicaragua is the biggest rain forest North of the Amazon ?

Each individual Guadua an-gustifolia bamboo plant form a clump and is not a running bamboo. On 1 hectare (2,47 acres) 400 clumps are plant-ed. Each clump will produce yearly an amount of culms (poles) The diameter of a G an-gustifolia pole is 10 till 16 cm (4 till 6+ inches) in diameter and 18 till 22 metres (59 till 72 ft) in length, This size appears approximately 5-6 years after planting, but only with a pro-fessional maintenance, good soil and climate conditions. The annual pole production and yield projections in this brochure are based on a har-vestable length of 15,2 metres (49 ft) maximum.

The most recent poles witch appears always have larger

diameters and lengths than the previous ones. After 6 till 9 years the diameters and lengths are stabilizes and all new poles witch appear from the ground will have the same diameter and length. The commercial life cyclys of a clump is 30+ years.Commercial G. angustifolia poles for bamboo flooring must have a minimum diam-

eter of 6 centimeters, they ap-pear in year three if one year old plants are planted and can be harvested for the first time in year 4 because they don´t need to mature as much as bamboo for construction uses. For construction and furniture bamboo of 10 centimeter di-ameter is needed, can be har-vested after year 5, but need to mature 4 years more, to get strength. It means that com-mercial bamboo for flooring gives a harvest income in year 4 after planting and bamboo for construction after year 9.


Guadua angustifolia bamboo

Guadua angustifolia BambooThe bamboo specie we are using is Guadua, a genus of bamboo witch consists of more than 30 species, including Guadua angustifolia and is native in many Latin American countries and came from Panama to Nicaragua and is now fully integrated in the country.G. angustifolia is the most commercialized of the Guadua family because it is almost resistant against plages. A culm or pole will reach in 6 months his full hight.Bamboos are a unique group of giant arborescent grasses in which the woody culms (poles) arise from underground rhizomes. They are shrubs and have tree-like habit; their culms are erect and sometimes climbing. It is the fastest grow-ing plant on this planet. Bamboos are characterized by woody, mostly hollow culms with internodes and branches at the culms nodes.

The clump size of Guadua angustifolia is self limitingA single bamboo clump can produce 76 meter commercial poles per year. The life cycle of a bamboo culm or plant is 40+ years. Small diameter culms will only occur in the first few years, after the 3-th year only large diameter culms emerge from the soil. A 20 metre bamboo culm or pole can replace itself within 6 months as opposed to a 20m hardwood tree which can take decades to grow.The main purpose of the plantation is to cultivate commercial poles or culms, there for the spacing has be reduced significantly. Since most of the new shoots will be harvested, only a few shoots are left to grow into mature culms. A well maintained bamboo clump that is thinned down to about 16-24 culms of vari-ous ages will vigorously direct the plant’s energy towards the production of new shoots.

Unless properly managed, clumping bamboos tend to become congested, resulting in deterioration both in quality and in quantity. It is difficult to extract bamboo from congested clumps. In a clump, new culms are normally produced outwards, towards the periphery of the clump and the older stems are left in the center. Harvesting of bamboo therefore should be from the center and not at the sides of the clumps. This makes it necessary to maintain clumps in the shape of a horse-shoe, keeping the apex towards the side where the new culms are progressing.The open end of the horse-shoe facilitates entry inside the clump for cutting of mature stems.


Why Bamboo ?

Restoration of the world´s forestOver the past 20 years, bamboo has devel-oped as an exceptionally valuable and often superior substitute for wood. Bamboo may replace wood in many industrial applications and thereby contribute to the saving and res-toration of the world´s forests. (United Na-tions)

Fast growingBamboo is the fastest growing land plant in the world. After harvesting a hardwood tree needs 50 years to replace itself. In compari-son, a 22 meter bamboo culm or pole can be replaced in just 6 months.

CO2Bamboo consumers four times more CO2 than a normal tree and produces 38% more oxygen reducing the impact of environmen-tal pollution. Global supplies of timber are unsustainable. Bamboo is the solution.

Increasing demandThe world market for bamboo is valued at US$ 10 Billion and is expected to reach about US$ 20 Billion by 2015 (Ministry of Agriculture, In-dia)

Innovative and High TechSince the early 1990s new industrial technol-ogies made it possible to produce high tech bamboo products entering the worldmarkets. The annual production of bamboo flooring in China was 26 Million square me-ters in 2010, there are more than 1.000 regis-tered bamboo products.


Why Nicaragua ?

Investor ProtectionNicaragua: Best in investor protection. The 2012 World Bank Doing Business Report ranked Nicaragua as the country that best protects its investors in Central America. The Foreign Investors Promotion Law (law 344*) of-fers foreign investors guaranteed 100 percent international ownership and freedom to repat-riate investments, profits and dividends.

Exceptional Tax BenefitsThe Law of Conservation and Sustainable De-velopment of the Forestry Sector (Law 462*) provides different tax benefits, like exonera-tion of property taxes for plantations.

Free Trade Agreement (DR-CAFTA)Nicaragua has signed this Free Trade Agree-ment with the United States, eliminating im-port duties. Non-Chinese bamboo products are set upon a steep trajectory.

Politics Nicaragua is a democratic country that has had 4 peaceful transfers of power in the last 20 years. According to many international publications there is no obstacle to stop Nica-ragua from becoming one of the top property investment destinations in the world, and that is exactly what it is doing.

*Please ask us for the English version of this Laws.


Why Eco BambooLot

Six decades experience at your serviceThe two Founders of Eco Bam-booLot share more than 6 dec-ades experience in success-ful Agro-Forest business and wooden flooring production.

Low entry level and low risk-to-return ratio1/4 Hectare (0,61 acre) lots planted with 100 one year old bamboo culms for US$ 9.000 Eco BambooLot guarantees the sales of the bamboo poles for the common export market price if you engage Eco Bam-booLot Maintenance for the management and maintenance of your lot.

ROI 26%Bamboo lot owners will receive harvest income starting at year four. The ROI is forecasted at 26% per annual year. The yearly har-vest revenues can be paid into your designated bank account, any-where in the world.

Socially Responsible Business (SRB)For decades the company incorporate social reinvestment as a fundamental component and driving mission. All businesses and initiatives under the Raúl Arana Castellón Group and Eco Bamboo Lot names will originate from and give back to the surrounded communities as a core focus.

Property TitleThis is not a land lease program or bond. You will be the deeded owner of the land and the bamboo. Property Title: Freehold (free simple).Real wealth is based on real goods and assets. Wealth cannot grow simply on paper. As time passes, bamboo grow, and their market-able timber volume increases also the land value will increase.


eco factory

Eco BambooLot opens in 2013 a Bamboo Flooring and Factory

The many characteristics of bamboo make it an en-during, versatile and highly renewable resource.. Due to new developments in the industrial bamboo sec-tor, bamboo has more than 1,500 documented uses, ranging from fuel wood to light bulbs, medicine, textile and flooring. A bamboo pole for con-struction needs 9 years to

grow and mature. For floor-ing 4 year old bamboo poles can be used and has fine physics mechanics perfor-mance and flexural inten-sity. The export market for bam-boo poles is small. The abil-ity to achieve any (or a good)

particular price for the bamboo depends on the production and export of processed bamboo prod-ucts. Nicaragua has signed a Free Trade Contract

like the US and there for the US is a key market. We have a strong network of buyers for processed bamboo prod-ucts. Eco BambooLot opens this year a bamboo flooring factory. The factory will pro-duce bamboo products as flooring, kitchens, furniture, panels and more high tech bamboo products. The two EcoBambooLot Founders combine unique experiences; 45 years forest agro culture and 18 years flooring man-ufacturing.

Lot owners will benefit be-cause we guaranty to buy the bamboo for the common export price of poles. In the past 4 years businesses have been hit with one of the worst economic down-turns in decades, but bam-boo processed products are still bestsellers. The market for bamboo

products is currently ap-proximately US$ 7 billion per year. This amount is expected to grow nearly 150% to US$ 17 billion/year by 2017. Much of the future uses for bamboo Will come from growing commercial applications such as flooring, textile, paper, house building mate-

rials and biomass for alter-native energy. This means that the purchase a bamboo lot will be part of a rapidly growing market. (Name in-stitute)


Yearly harvest projections have

Each clump (plant) will pro-duce more than 30 poles per year. However, our conserva-tive calculations are based to harvest 5 mature poles per plant per year only. The main purpose of the

One clump or plant, can produce 30 or more culms (poles) per year. However the yearly harvest projections are based on a production of 10 new poles per plant per year. For the purpose of sustainability, it is assumed that only 5 mature poles are harvested each year. The final part of the assumption is that each culm (pole) produces 15,2 metres of harvest-able bamboo. However, Guadua bamboo can regularly be seen growing up to 25 meters hight with only the final few meters of growth narrowing in diameter.After 8 years the pole diameter is stabilizhed. In the calculations above till a diameter of14 centimeters. Estimated is a diameter of 18 centimeters witch will generate higher har-vest revenues.

plantation is to cultivate com-mercial poles or culms, there for the spacing in the clump has to be reduced significant-ly. Since 1/3 of the new shoots will be harvested, only a few shoots are left to grow into

mature culms. A well main-tained bamboo clump that is thinned down to about 16-24 culms of various ages will vig-orously direct the plant’s en-ergy towards the production of new shoots.


The above forecast yearly harvest projections have been pro-duced using the following common information and assumptions

· The lot owner has engaged for the maintenance manage-ment, harvest and sales a pro-fessional company. Lot own-ers are free to choose a local company for the maintenance or engage our maintenance and management company Eco Bamboo Lot Maintenance for a fee of 26% of the harvest value. Please ask the special m a i n t e n a n c e brochure.

· Export price for poles of 14 centimeter diameter is $1,10 per metre, the harvest projec-tions figure above discounts this rate further to $0,92 per metre.

· Not calculated: The mainte-nance fee and sales prices of bamboo will increase during the life cyclus of the plant.

· No marketing and sales costs and no risk of no sales because our own factory will purchase the complete har-vest against the common ex-port prices.

· A bamboo lot is planted with 1 year old bamboo plants.

· Not calculated is as time passes, bamboo grow, and their marketable timber vol-ume increases, also the land value will increase.

· The local sales and also the export market for bamboo poles is small. The local whole

sales prices for small quanti-ties bamboo poles with a di-ameter of 14 centimeters is $1,60 per metre and the export bulk prices $1,10 In our fore-cast harvest income we guar-anty a sales price of $0,92 per meter, witch is a conservative calculation.


Purchase a bamboolot

Management and Maintenance You are free in choosen a company for the management and maintenance. In the case you en-gage Eco bambooLot Maintenance the first 4 years management and maintenance costs are covered and from year 4 the maintenance and management of your lot for a 26% fee from the annual sales of all bamboo from your lot. For more information see also our management and maintenance brochure.Each individual lot owner will receive twice a year a report with information as the average diam-eter, height and grow rate, soil condition and pictures.Our interest will ensure the highest possible amount of commercial poles.

Prices:1/4 hectare (0,61 acre)include 100 one year old bamboo plants US$ 9.000

1/2 hectare (1,23 acre)include 200 one year old bamboo plants US$ 18.000

1 hectare (2,47 acre)include 400 one year old bamboo plants USS 36.000

Prices are include:1% Land Transfere Tax, 0,5% Municipal Tax,1% Title Registration Taxes, and 1% Lawyers Fee.

Purchase a bamboo lot The 35 hectares (86 acres) Bamboo Plantation “La Sor-presa” is the smallest plan-tation of the company, but our pearl. Located 5 miles from the Pacific Ocean, near the sleeping fishing village El Transito. The plantation contains 38% forest witch is part of an ecological corridor, natural bamboo and a nursery.

Reservation Procedure Make a choice about the lot size, and the dissision or you want to buy the property on your own name or on the name of a entity. We will sent you the signed purchase contract. Sign the purchase contract and sent to us by e-mail and make your payment.

You are welcome to visit us for a few day’s, we offer a 5-day tour to Nicaragua to know us better and see more of this amazing country. For more information about the tours please visit our web-site. The procedure to register the lot on your name or an entity will take around 20 working days.

It is not necessary to be in Nicaragua to register your property. If you don’t expect to be here on the day of reg-istering, you will need a Power of Attorney (POA) is in place which allows your representa-tive to sign on your behalf. A POA must be notarized by a licensed Nicaraguan lawyer. A representive can be any per-son, lawyer or our lawyer. The cost of a POA is $50 and we can help you with this item.


Property on your private name or corporation

Property on your private name or CorporationYou can own property in your private name, but you also can own property in the name of a Nicaraguan Corporation, or in the name of a foreign Corporation. Owning Nicara-guan property in the name of a corporation will give you by selling your property a lot of (tax) benefits. Owning in the name of a Nicaraguan corpo-ration is common, however the creation of a Nicaraguan

corporation requires a mini-mum of two shareholders, f.e family or friends. We can help you to establishe a Sociadad Anonima (s.a.) The total costs are US$ 825

Bank Accounts Foreigners can open a bank ac-count with a Nicaraguan bank for checking or savings and in either US dollars or local cur-rency. On request the bank will deliver also internet banking and a debet or credit card.

Management and Mainte-nanceEco BambooLot Maintenance company ( EBLM) is part of the Raúl Arana Castellón Group and has currently1.600 hectares (3.952 acres) forest plantations under manage-ment. EBLM offers Bamboo lot owners a complete de-signed forest management, maintenance and sales plan in return for 26% of the harvest value. EBLM will report every quarter to each individual lot

owner he health, measure-ments and pictures.The yearly harvest will be sold and the proceeds will be paid into your designated bank ac-count, anywhere in the world.

Investing in Nicaragua has few restrictionsNicaragua’s foreign invest-ment law establishes equal treatment of foreign and domestic investment, elimi-nates restrictions on the way in which foreign capital can

enter or leave the country, and recognizes the foreign in-vestor’s right to own and use property without limitation.


And the World Takes Notice: What the Media Is Reporting

“The ease of purchasing real estate, tax incen-tives, low crime and a laid-back lifestyle on a gorgeous stretch of coast make it appealing” The Los Angeles Times

Over 40,000 Americans already are “turning Nicaragua into the latest retirement and invest-ment hotspot in Central America” Miami Herald

“Nicaragua’s tourism industry is bullish for good reason. The country’s beaches are among the finest in the Americas, and among the least developed. Dozens of volcanic peaks offer treks through rain forests teeming with a rich biodiversity. And large tracts of nature reserves offer an eco-tourist wonderland.” The New York Times

“With 450 miles of coastline, charming Span-ish colonial towns, a cost of living up to 60% less than in the U.S. and a good reputation for safety; it’s an exotic Florida on the cheap.” Forbes

“Inexpensive beautiful land and a cost of liv-ing at fraction of what it is in the US”Cristian Science Monitor

“Forward thinking investors can find some of the greatest deals on earth in this country” MSN Money

“From the top to bottom are beautiful beaches that are only now being discovered.”Lonely Planet

“Cheap living, affordable waterfront housing and pleasant weather are drawing many who wouldn,t be able to live in similar luxury in the United States.”National Public Radio

Nicaragua’s veil of anonymity is slowly but surely com-ing down.

U.S. News & World Report rated Nicaragua one of the 10 best places to retire in the maga-

zine’s most recent survey


The Raúl Arana Castellón Group

CEO and owner Carlos Raúl Arana Castellón established the company as a construc-tion company in 1965. This part of the group is still very successful. In November 2012 the company will start build-ing an eco resort development with 1,2 mile beachfront on the Pacific coast. The group also owns and manage 3.952 acres agro and forest plantations on different locations in Nicara-gua. The company produces and supplies planting mate-rials, provides international consultation on reforesting technology, eco agriculture and plantation practice.

Eco BambooLot and Eco BambooLot Maintenance are part of the Raúl Arana C & Cia Ltd Group.

Since the early 1990´s new in-dustrial technologies made it possible to produce high tech bamboo products. The group is since four years involved in the development of innovative bamboo joinery techniques and is planning to open in 2013 a bamboo flooring fac-tory. Co Founder Joannes C van Veen has 18 years experi-ence of owning and managing a successful wooden flooring factory.

This unique combination of more than 6 decades Agro-Forest business experience and wooden flooring produc-tion will benefit the Eco Bam-booLot owners.

The company don´t sell bonds or land lease programs, but only deeded bamboo lots, because it believes that real financial wealth is based on real goods and assets. Finan-cial wealth cannot grow sim-ply on paper.

For decades the company in-corporate social reinvestment as a fundamental component and driving mission. All busi-nesses and initiatives under the Raúl Arana Castellón Group and Eco BambooLot names will originate from and give back to the surrounded communities as a core focus. The company is driven by the desire to create positive social and environmental impact.


Bamboo Plantation Risks Commercial Risks

Bamboo plantations are sub-ject to injury by various kinds of herbivorous insects. There are two different groups of risk factors;• Insect pest and disease• Commercial risk

Insect pest and diseaseIn the first two years of growth the danger comes from small field mice and ants.Attack by these insect reduces plant vigour and the productivity of bamboo stands. From year

three the danger can come from wood boring insects. The bamboo plants will be regu-larly treated with (if possible) organic pesticides. The Raúl Arana Castellón group has developed the last 4 decades a sufficient pest and disease program for Agro-forestry. Note: The natural bamboo on our plantations is not treated at all and is not affected by insect pest. G. angustifolia is the most commercialized of the Guadua family because it is almost resistant against plages.

DroughtMature bamboo has an deep root drip system, unique in the plant world. The poles store water inside their hol-low canals for realease during drought. The plantation has abundant water resources for easy irrigation.

Flooding The plantation has no history of flood risk. The land has a gentle slope and good drain-age. Bamboo is also highly resilient to flooding. The natu-ral bamboo on our plantation grows on the riverbank and survives yearly flooding.

FireNicaragua has a tropical cli-mate. Relative humidity vary-ing between 65-90% The high moisture content makes forest fires unlikely. Bamoo is virtually fire reststant and on the plantation are water tubes reaching every corner.

CongestionCongestion in bamboo culms is an often seen problem caused by mismanagement. Unrestricted cutting along the periphery of clumps, browsing of young shoots by cattle, re-moving young shoots for food, prevent living rhizomes from spreading outwards. They consequently develop within the clump, and new culms (poles) so produced create congestion.

Sales of bamboo poles Lot owners who engage EBLM for the management and main-tenance, receive a minimum price guarantee for the bamboo poles, based on the common export price. The maintenance fee is 26% of the yearly harvest value. So it´s in the interest of EBLM to archive the highest pos-sible prices for the bamboo, and a high quantity of quality com-mercial bamboo poles. Beside this the company is plan-ning to open in 2013 a bamboo flooring and furniture factory. EBLM has a large network for bamboo flooring buyers.

Risk of reduced productionThe company group has dec-ades experience in Agro-forestry.

The figures in this brochure witch describes the forecast returns are conservative. Bamboo is the fastest growing land plant in the world, it produces a far greater volume of usable biomass than traditional timber. Thanks of the new processing technologies this biomass replace many tra-ditional timber products.Not all the plants will survive the first year. EBLM will replace dam-aged plants for free. Volume pro-duction is underpinned by our

company stock.


President and Co Founder Eco BambooLot, entrepreneur.

He was for 12 years own-er of a successful wooden flooring factory. The lack of certified wood motivated him to sell his factory. He moved in 2003 to Central AmericaHis growing interest for bam-boo and starting a bamboo flooring factory brought him to Nicaragua. In his opinion the time is over to produce or buying wooden floors made from not certified wood, bamboo is a better alterna-tive. Bamboo flooring is a quality product that can be used widely and has a large, global consumer market. His opinium is that bamboo plantations can create posi-tive environmental and so-cial change.

Group, established in 1965 as an construction company. Raúl is graduated in the US as Civil Engineer. As owner of 3.952 acres (1.599 hecatares) of farm land and forest he managed also successful his agro–forestry business.He was founder and for many years President of the Chamber of Tourism Central America. In the 80’s he de-veloped interest in environ-mental issues and planted thousands of native trees on his plantations and farms. Commercial bamboo plan-tations are in his opinion one of the many available solu-tions to change the planet, environmentally and socially.

CEO and founder of the Raúl Arana Castellón C & Cia The Raúl Arana Castellón Group is committed to being an indus-

try leader by preserving the natural resources in Nicaragua. This initiative is part of our continued legacy of caring for people and the environment in which they live, work, study and play. Since the foundation in 1965 the company incorporate social reinvest-ment as a fundamental component and driving mission.

Did you know ? Nicaragua has the largest expanse of rain forest north of the

Amazon basin 100 bamboo clumps removes 9,5 tons of carbon dioxide and

could offset a family of three carbon footprint. A bamboo plantation is labor intensive and create employ-

ment within poor areas. Bamboo has some exceptional qualities such as a higher ten-

sile strength than steel yet able to be used in ultra-soft clothing. Bamboo has more than 5.000 uses; it can be used as a sub-

stitute traditional timber in virtually any product at a lower cost. A Clump is the bamboo plant and a culm is the bamboo pole. Increasingly stringent import laws will force developing coun-

tries to bring an end to illegal logging.

Bamboo owns your heart. Now, own the heart of Bamboo

Raúl Arana Castellón

Joannes C van Veen Our Environmental and Social Commitment


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