Deal history comparison #1166

Previous version (124750)

Selected version (125309)

Location #1

Spatial accuracy level
Administrative region
Location
Cuvette, Congo

Target country
Congo, Rep.
Comment on location
The majority of the land (402,637 hectares) is in Cuvette Province, while the remaining 67,363 hectares are in Mokeko District in Sangha Province.

Location #1

Spatial accuracy level
Administrative region
Location
Cuvette, Congo

Target country
Congo, Rep.
Comment on location
The majority of the land (402,637 hectares) is in Cuvette Province, while the remaining 67,363 hectares are in Mokeko District in Sangha Province.

Land area

Intended size (in ha)
470,000
Size under contract (leased or purchased area, in ha)
470,000
Comment on land area
Atama says it will develop palm oil plantations on 180,000ha

Intention of investment

Intention of investment
Agriculture unspecified, Timber plantation (for wood and fibre)
Comment on intention of investment
180,000 of palm groves, & 290000 for ancillary industries, for industrial production of palm oil estimated at 90000 tonnes per year The company has admitted that “timber extraction is a necessary part of the process to make available land for an oil palm plantation”

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2010] Concluded (Contract signed)
Comment on negotiation status
On 17 December 2010, after 19 months of negotiations, the Minister of Agriculture and the Minister of Land Affairs and Public Domain in the Republic of Congo signed a concession agreement with a company called Atama Plantations to ‘occupy’ 470,000 hectares of federal land for the development of an oil palm plantation and associated industrial complexes.

Implementation status

Implementation status
[2012] Startup phase (no production)
Comment on implementation status
To date, Atama has begun clearfelling forests for roads and an oil palm nursery in one area of 5,000 hectares at Epoma in Sangha65, while a second 5,000 hectare section of forest in the concession in Cuvette has also been signed off for logging and clearance.

Leasing fees

Annual leasing fee
2,500
Annual leasing fee currency
Congolese Franc
Annual leasing fee type
per ha
Comment on leasing fees
The licensee has to pay royalties of CFA 2,500 (US$5) per hectare of planted land (half the rate which will eventually be paid by Olam in Gabon, from when palm oil production starts, but is exempted from customs duties or VAT on imports of equipment, and from all taxes on profits for the first five years of production.

Land area

Intended size (in ha)
470,000
Size under contract (leased or purchased area, in ha)
470,000
Comment on land area
Atama says it will develop palm oil plantations on 180,000ha

Intention of investment

Intention of investment
Agriculture unspecified, Timber plantation (for wood and fibre)
Comment on intention of investment
180,000 of palm groves, & 290000 for ancillary industries, for industrial production of palm oil estimated at 90000 tonnes per year The company has admitted that “timber extraction is a necessary part of the process to make available land for an oil palm plantation”

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2010] Concluded (Contract signed)
Comment on negotiation status
On 17 December 2010, after 19 months of negotiations, the Minister of Agriculture and the Minister of Land Affairs and Public Domain in the Republic of Congo signed a concession agreement with a company called Atama Plantations to ‘occupy’ 470,000 hectares of federal land for the development of an oil palm plantation and associated industrial complexes.

Implementation status

Implementation status
[2012] Startup phase (no production)
Comment on implementation status
To date, Atama has begun clearfelling forests for roads and an oil palm nursery in one area of 5,000 hectares at Epoma in Sangha65, while a second 5,000 hectare section of forest in the concession in Cuvette has also been signed off for logging and clearance.

Leasing fees

Annual leasing fee
2,500
Annual leasing fee currency
Congolese Franc
Annual leasing fee type
per ha
Comment on leasing fees
The licensee has to pay royalties of CFA 2,500 (US$5) per hectare of planted land (half the rate which will eventually be paid by Olam in Gabon, from when palm oil production starts, but is exempted from customs duties or VAT on imports of equipment, and from all taxes on profits for the first five years of production.

Contract #1

Contract date
2010-12-17
Duration of the agreement (in years)
30

Contract #1

Contract date
2010-12-17
Duration of the agreement (in years)
30

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned number of jobs (domestic)
20,000

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned number of jobs (domestic)
20,000

Operating company

Operating company
Comment on investment chain
The $25 million purchase of Atama by Wah Seong is almost as complicated as the web of companies behind Atama. When the purchase is completed, Wah Seong will, through a specially formed subsidiary WS Agro Industries Pte Ltd, own 51% of Atama’s shares, while the original owner (Silvermark/Tanaldi) will retain 39% and another BVI-registered company named Giant Dragon Group will hold the remaining 10%.69 As of December 2012, the first phase of the purchase was complete, with Wah Seong holding 41.7% of the shares.

Operating company

Operating company

Data source #1

Data source type
Media report
File
Date
2011-01-01

Data source #2

Data source type
Media report
File

Data source #3

Data source type
Research Paper / Policy Report
File

Data source #4

Data source type
Research Paper / Policy Report
File

Data source #5

Data source type
Company sources
File

Data source #1

Data source type
Media report
File
Date
2011-01-01

Data source #2

Data source type
Media report
File

Data source #3

Data source type
Research Paper / Policy Report
File

Data source #4

Data source type
Research Paper / Policy Report
File

Data source #5

Data source type
Company sources
File

Former land use

Comment on former land use
the majority of the area slated for conversion for the Atama plantation is virgin rainforest. Much of this forest would almost certainly be classified as being of ‘high conservation value’ (HCV) according to standard definitions.

Former land cover

Former land cover
Forest land
Comment on former land cover
Around 28,000 hectares of the allocated concession land appears to overlap with a proposed new NationaPark, Ntokou-Pikounda, which was announced in 2006 and is in the last stage of formal establishment.

Former land use

Comment on former land use
the majority of the area slated for conversion for the Atama plantation is virgin rainforest. Much of this forest would almost certainly be classified as being of ‘high conservation value’ (HCV) according to standard definitions.

Former land cover

Former land cover
Forest land
Comment on former land cover
Around 28,000 hectares of the allocated concession land appears to overlap with a proposed new NationaPark, Ntokou-Pikounda, which was announced in 2006 and is in the last stage of formal establishment.

Detailed crop, animal and mineral information

Crops area
Oil Palm

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Palm oil

Detailed crop, animal and mineral information

Crops area
Oil Palm

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Palm oil

Overall comment

Overall comment
Import of error check - Coordinator's overview comment: 0

Overall comment

Overall comment
Import of error check - Coordinator's overview comment: 0