Nov 23, 2006. /Lesprom Network/. The boards of IFC (International Finance Corporation) and MIGA (Multilateral Investment Guarantee Agency) have approved on November 21 the financing amounting to $170 million and the guarantee for up to $350 million for Botnia's pulp mill project in Fray Bentos, Uruguay. The World Bank states in its press release: "The two organizations, after completing a thorough review of the facts, are convinced that the mill will generate significant economic benefits for Uruguay and cause no environmental harm." "We are pleased that this process has been finalized and that the exhaustive studies have clearly endorsed the benefits the mill will bring. We hope that today's decision can contribute to convincing the various stakeholders that the mill will comply with relevant environmental standards and not compromise the wellbeing of the inhabitants in the area", states Erkki Varis, president and CEO of Botnia. Botnia also welcomes the facilitation of the Spanish king as a possibility to establish a dialogue between the governments of Uruguay and Argentina to find a solution to the political conflict arisen around the pulp mill project and hopes that the mediation will for its part help in clarifying the concerns of the people in Gualeguaychú, Argentina. "We are willing to contribute to this facilitation and assist the Uruguayan government in solving the conflict with Argentina", says Erkki Varis, president and CEO of Botnia. "We have a strong commitment to the Fray Bentos project, and have promised our long-term presence in the area to both Uruguay and Fray Bentos." Botnia wants to emphasize that according to the final cumulative impact study and the experts' report (Hatfield), both commissioned by IFC, the mill will not harm the environment or the present livelihoods in the area, but will have significant positive socio-economic impacts in the entire area. Additionally, Botnia has announced its willingness to treat the municipal sewage water from the city of Fray Bentos in its effluent treatment plant as well as burn the black liquor from the Pamer pulp mill situated in the nearby city of Mercedes in its recovery boiler. According to the Hatfield report, these measures will contribute to improve the quality of the water in the river Uruguay from its present status.