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A city with only 8 inhabitants is about to change forever! The pulp mill, valued at R$28 billion, promises to transform it into an economic hub. But is the city prepared for the impacts that this massive investment could bring? Discover all the details of this surprising story.
Inocência, a peaceful town with just over 8 thousand residents, located in Mato Grosso do Sul, is about to star in an economic and social revolution that is already intriguing experts and arousing the curiosity of all of Brazil.
While many small municipalities face challenges in growing, this small dot on the map could become a model for development — or an example of the risks associated with mega-investments in underdeveloped regions.
The reason for all the attention? The construction of a gigantic pulp mill, valued at an impressive R$28 billion, by the Chilean company Arauco. But what is really at stake for Inocência?
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This text is part of a special edition of Click Petróleo e Gás, which recalls the most impactful reports of 2024.
What we know about the billion-dollar project
The city of Inocência is 330 km from Campo Grande and is known for its low population density.
Even so, it was chosen by Arauco to host one of the largest cellulose factories in the country.
According to the company, earthmoving works should begin in the second half of 2024, and construction of the industrial plant will begin in 2025.
With a population of just 8.404, the region is expected to face profound changes, both positive and challenging.
The city's mayor, Antônio Ângelo Garcia dos Santos, known as Toninho da Cofapi, said he was committed to ensuring that the municipality benefits from the project without suffering any negative impacts.
“Our goal is to prevent the city’s infrastructure from being overwhelmed and health systems from collapsing”, the mayor said in an interview.
According to him, municipal legislation was created that prohibits the construction of infrastructure in the vicinity of the construction site. The solution found was to house temporary workers in a location 40 km from the city.
Economic and social impacts: lessons from the past
To understand what Inocência can expect, it is important to look at similar experiences. In 2021, the city of Ribas do Rio Pardo, also in Mato Grosso do Sul, received a factory from Suzano, another giant in the pulp sector. The city, which had around 21 thousand inhabitants at the time, faced a true revolution:
- Population growth: Ribas do Rio Pardo saw its population jump to 35 thousand inhabitants.
- Real estate inflation: Rents that cost R$700 rose to R$2,5.
- Infrastructure: Partnerships with Suzano were necessary to strengthen health, safety and social assistance.
Despite the challenges, Ribas do Rio Pardo's experienced administration managed to create solutions that could serve as a model for Inocência.
However, the professor of architecture and urban planning at PUC Campinas, Fabio Muzetti, warns that the situation demands caution.
“The money takes time to arrive, but the pressure on municipal services is immediate. Public policies are essential”, he said.
Administrative challenges and negative examples
The example of Ribas do Rio Pardo is just one side of the coin. Gustavo Fernandes, a public administration specialist at FGV, points out that a sudden abundance of resources does not guarantee prosperity.
He recalls the case of Rio de Janeiro, which, despite receiving R$11,3 billion in royalties from pre-salt oil, continues to face financial crises.
To avoid similar pitfalls, the municipal administration of Inocência will need to invest in long-term planning and the implementation of consistent public policies.
The presence of Unimed, promised by Arauco, could be a positive sign of commitment to the community.
The cellulose industry in Brazil
The cellulose sector is one of the most profitable in Brazil and attracts mega investments.
The country currently has 53 pulp companies in operation, with Mato Grosso do Sul being the second largest national exporter.
In 2022 alone, the state shipped 4,46 million tons, representing 18,2% of Brazilian revenue in the segment.
According to experts, the choice of small municipalities is not random.
The industry demands large areas for eucalyptus plantations, which are easier to find in less densely populated regions.
Expectation and reflection
The future of Inocência is promising, but also full of challenges.
The city can become a hub for development and quality of life or become a warning sign about the uncontrolled impacts of large investments.
And you, do you think Inocência is ready for this historic challenge? Leave your opinion in the comments!
