Source: Reuters

WASHINGTON, Nov 21 (Reuters) - The World Bank on Tuesday agreed to finance a controversial pulp mill project in Uruguay that soured relations with neighboring Argentina over concerns it will cause environmental damage to a river they share.

The financing by the bank's private-sector lender, International Finance Corp and guarantee agency Multilateral Investment Guarantee Agency will provide up to $520 million in loans and insurance for Finnish pulp-making firm Metsa-Botnia's Orion mill on the Uruguay River, which separates the two countries.

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Posted by pichu at November 22, 2006 12:57 AM