A resourceful company in El Salvador called NOBS Hidrofusion recently received $50,000 to help develop an innovative product that's both environmentally friendly and economically promising. Environmental Enterprises of Central America (EACA), an investment company based in San Jose, Costa Rica, that finances private projects with environmental paybacks, provided the infusion of funds.
EACA, a subsidiary of Environmental Enterprises Assistance Fund in Washington, D.C., finances projects in Central America through a $10 million dollar venture capital fund, the first for environmental projects in the region. EACA-backed enterprises can receive $50,000 to $750,000. EACA offers better rates than commercial banks and in some cases, grants a grace period before the debt must be paid back or exchanges debt for stock in the business. "We are open to hearing different business proposals, as we are very flexible," says EACA manager Leonardo Ramirez.
EACA has provided funding for renewable-energy, wastewater- treatment, recycling, ecotourism and forest-management projects. To qualify for funding, projects must be developed by the private sector, be technically and financially feasible, have capable administrators, and represent a clear contribution to environmental protection.
NOBS, the Salvadoran business, plants a type of grass called vetiver. General manager Aldo Miranda says that the company extracts the oils from the grass and sells them to the perfume industry in Europe and the United States. But vetiver also has a distinct environmental benefit: It checks erosion. NOBS promotes vetiver cultivation throughout El Salvador, where some 140 metric tons of the country's soil are lost each year to erosion, caused by deforestation for agriculture and development. Miranda explains that vetiver's roots are "abundant and strong and can grow some four meters deep, in a direct line, so they retain the soil." The grass doesn't compete with other crops since it is propagated by rhizomes, not by seed.
"In 1996, we planted 300 kilometers of vetiver," Miranda reports. "Farmers and urban developers buy it to avoid erosion. If it isn't cut, the grass can live more than 200 years." He adds: "EACA's financing gave us breathing room. No one believed in our project, since it was very innovative. Now we have working capital."
Contacts: EACA, Apdo. 1581-2050, San Jose, Costa Rica, tel
506/257-4717, fax 506/256-1357
This article is provided from the Rainforest Alliance's Tropical Conservation Newsbureau,
based in San Jose,Costa Rica. For more information, contact Diane Jukofsky or Chris Wille,
Rainforest Alliance, Apdo. 138-2150, Moravia, San Jose, Costa Rica; Phone: 506-240-9383;
Fax: 506-240-2543; Email: infotrop@sol.racsa.co.cr
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