The Government of Sri Lanka (GoSL) is actively seeking a visionary Agroforestry Carbon-offset Public Private Partnership (PPP) facilitated through a Special Purpose Vehicle (SPV). This collaborative venture is characterized by a dynamic 60-40 sharing model subject to negotiation on a case-by-case basis post the comprehensive due diligence conducted by the private entity. The potential funding agency has the option to bring both financial resources and expertise concurrently, or alternatively; the know-how can be arranged independently through a distinct entity seamlessly integrated into the proposed PPP framework.
In a strategic move GoSL has identified and earmarked an expansive 10,000 hectares of land in the Eastern Province specifically allocated for the Agroforestry initiative. The envisioned model entails the establishment of a 30year PPP structured in 7year cycles. During the initial 7 years carbon credits will be accrued as trees mature followed by the harvesting of timber in the 7th year. Subsequently, a new cycle will commence with the planting of another batch of trees perpetuating the sustainable process. The overarching goal of the project is to repeat this cycle for a total of four consecutive seven year periods culminating in a bulk settlement of carbon.
The estimated financial outlay for such a pioneering PPP is anticipated to range between 10 to 20 million American dollars. This allocation will not only support the initial investment but also contribute to the long-term success and sustainability of the Agroforestry Carbon-offset project. This forward-thinking initiative underscores the commitment of GoSL to environmental conservation, economic growth and the promotion of sustainable practices in the region.
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