Deal history comparison #234

Previous version (125476)

Selected version (126267)

Location #1

Spatial accuracy level
Administrative region
Location
Attapeu, Laos

Target country
Lao PDR
Comment on location
rubber: Xaysetha and Phouvong districts

Location #1

Spatial accuracy level
Administrative region
Location
Attapeu, Laos

Target country
Lao PDR
Comment on location
rubber: Xaysetha and Phouvong districts

Location #2

Spatial accuracy level
Administrative region
Location
Sekong, Laos

Target country
Lao PDR

Land area

Size under contract (leased or purchased area, in ha)
[2008] 10000
Size in operation (production, in ha)
[2010] 8078
[2009] 7323
Comment on land area
In December 2008, HAGL signed a contract with the GoL that officially gave the company the right to log timber from and grow rubber on a 10,000-ha plot of land February 2010 provincial and district level governments had already allocated 8,078 ha to the company. 65% of the 8,078 ha had already been cleared, out of which 61% had been planted with rubber. Between May 2007 and August 2009, 5,318 ha of rubber had been planted with rubber and 2,005 ha of land had been cleared, while 2,885 ha remained untouched.

Intention of investment

Intention of investment
Agriculture unspecified, Timber plantation (for wood and fibre), Other (please specify)
Comment on intention of investment
2 Airports are planned HAGL obtained the rights to explore for mineral potentials in Sekong and Attapeu provinces of southeastern Laos but there ar no clues for activity realized in this sector.

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2008] Concluded (Oral Agreement)

Implementation status

Implementation status
[2008] Startup phase (no production)
Comment on implementation status
February 2010 provincial and district level governments had already allocated 8,078 ha to the company. 65% of the 8,078 ha had already been cleared, out of which 61% had been planted with rubber. Between May 2007 and August 2009, 5,318 ha of rubber had been planted with rubber and 2,005 ha of land had been cleared, while 2,885 ha remained untouched.

Contract farming

Contract farming
Yes
Comment on contract farming
The complex consists of a sugarcane material zone of 12,000 hectares to provide feedstock for a sugar mill with a daily crushing capacity of 7,000 tons of sugarcane. HAGL chairman Doan Nguyen Duc informed the group had grown more than 5,000 hectares of sugarcane in Attapeu and the rest would be grown by Laotian farmers.

Land area

Intended size (in ha)
40,000
Size under contract (leased or purchased area, in ha)
[2008] 10000
Size in operation (production, in ha)
[2010] 8078
[2009] 7323
Comment on land area
by now the company is said to have more than 20000 ha (http://stoxplus.com/News/94141/1/197/hag-updated-data-on-rubber-sugarcane-projects-in-laos.stox ; http://nhandan.com.vn/en/business/item/985702-.html ; http://www.globalwitness.org/sites/default/files/library/Rubber_Barons_lores_0.pdf )

Intention of investment

Intention of investment
Agriculture unspecified, Forestry unspecified, Other (please specify)
Comment on intention of investment
2 Airports are planned HAGL obtained the rights to explore for mineral potentials in Sekong and Attapeu provinces of southeastern Laos but there ar no clues for activity realized in this sector.

Nature of the deal

Comment on nature of the deal
received right to use land and to log timber

Negotiation status

Negotiation status
[2008] Concluded (Oral Agreement)
Comment on negotiation status
there seem to have been concessions after 2008

Implementation status

Implementation status
[2008] Startup phase (no production)
[2010] In operation (production)

Contract farming

Contract farming
Yes
Comment on contract farming
The complex consists of a sugarcane material zone of 12,000 hectares to provide feedstock for a sugar mill with a daily crushing capacity of 7,000 tons of sugarcane. HAGL chairman Doan Nguyen Duc informed the group had grown more than 5,000 hectares of sugarcane in Attapeu and the rest would be grown by Laotian farmers.

Contract #1

Duration of the agreement (in years)
35

Contract #1

Duration of the agreement (in years)
35

Operating company

Data source #1

Data source type
Research Paper / Policy Report
File
Date
2009-01-01
Comment on data source
gtz, "Foreign Direct Investment (FDI) in Land in the Lao PDR", December 2009

Data source #2

Data source type
Research Paper / Policy Report
File
Date
2011-01-01

Data source #3

Data source type
Media report
File

Data source #4

Data source type
Media report
File
Date
2013-02-26

Data source #1

Data source type
Research Paper / Policy Report
File
Date
2009-01-01
Comment on data source
gtz, "Foreign Direct Investment (FDI) in Land in the Lao PDR", December 2009

Data source #2

Data source type
Research Paper / Policy Report
File
Date
2011-01-01

Data source #3

Data source type
Media report
File

Data source #4

Data source type
Media report
File
Date
2013-02-26

Data source #5

Data source type
Company sources
Date
2012-12-01
Comment on data source
www.hagl.com.vn/UserFiles/file/bao%20cao%20thuong%20nien%20nam%202012/HAG%20-%20AR12EN%20version_spread%20pages.pdf

Data source #6

Data source type
Media report
File

Data source #7

Data source type
Media report
File
Date
2013-02-26

Data source #8

Data source type
Government sources
File
Date
2013-05-01

Consultation of local community

Comment on consultation of local community
Out of the seven impacted villages, only four were warned beforehand that land from their village had been conceded. Their stories show the type of repressive and ideological pressure they faced to accept the concession.

Displacement of people

Number of people actually displaced
7,331

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
employement Compensation for lost land can be seen as a retroactive tactic used to reduce resentment to the project after land had been acquired. Rather than being a proactive strategy of offering high prices in advance to force villagers to give up their land, compensation was retroactive in the sense that it was intended to smooth over resentment that might result from the bumpy process of directly appropriating land. In most cases, compensation was only offered when villagers confronted the company about land that had already been cleared. HAGL only offered compensation in advance when they could visibly see highly valuable economic productivity on the land, such as commercial tree plots, or when they encountered farmers working in their fields during the clearing process. Compensation can be seen as a strategy for lessening the possibilities of civil unrest, sabotage to plantations, etc. Whether proactive or retroactive, the compensation process went unregulated – compensation amounts were decided based upon individual negotiations between the village household and HAGL representatives, characterized by a clear misbalance of power. Such negotiations led to prices far below the market value of the land, and much less than what villagers requested. HAGL forced villagers to accept such low prices by threatening to not award any compensation at all, a threat that villagers felt they could have no recourse against.

Promised benefits for local communities

Promised benefits for local communities
Health
Education

Consultation of local community

Comment on consultation of local community
Out of the seven impacted villages, only four were warned beforehand that land from their village had been conceded. Their stories show the type of repressive and ideological pressure they faced to accept the concession.

Displacement of people

Number of people actually displaced
7,331

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
employement Compensation for lost land can be seen as a retroactive tactic used to reduce resentment to the project after land had been acquired. Rather than being a proactive strategy of offering high prices in advance to force villagers to give up their land, compensation was retroactive in the sense that it was intended to smooth over resentment that might result from the bumpy process of directly appropriating land. In most cases, compensation was only offered when villagers confronted the company about land that had already been cleared. HAGL only offered compensation in advance when they could visibly see highly valuable economic productivity on the land, such as commercial tree plots, or when they encountered farmers working in their fields during the clearing process. Compensation can be seen as a strategy for lessening the possibilities of civil unrest, sabotage to plantations, etc. Whether proactive or retroactive, the compensation process went unregulated – compensation amounts were decided based upon individual negotiations between the village household and HAGL representatives, characterized by a clear misbalance of power. Such negotiations led to prices far below the market value of the land, and much less than what villagers requested. HAGL forced villagers to accept such low prices by threatening to not award any compensation at all, a threat that villagers felt they could have no recourse against.

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Capacity Building

Former land owner (not by constitution)

Former land owner
State
Community

Former land use

Former land use
Smallholder agriculture
Pastoralism
Forestry
Other

Former land cover

Former land cover
Cropland
Forest land
Shrub land/Grassland (Rangeland)

Former land owner (not by constitution)

Former land owner
State
Community

Former land use

Former land use
Smallholder agriculture
Pastoralism
Forestry
Other

Former land cover

Former land cover
Cropland
Forest land
Shrub land/Grassland (Rangeland)

Detailed crop, animal and mineral information

Crops area
Rubber tree, Sugar Cane
Resources area
Copper, Iron ore

Detailed crop, animal and mineral information

Crops area
Rubber tree
Resources area
Copper, Iron ore

Use of produce

Has export
Yes

In country processing of produce

In country processing of produce
Yes

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (River)
Comment on source of water extraction
irrigation by water from four surrounding rivers through drip method (2l/h), helping rubber trees to avoid falling leaves

Overall comment

Overall comment
Import of error check - Coordinator's overview comment: Remove/investigate investor name? Import of error check - Reviewer's overview comment: Hoang Anh Gia Lai (HAGL) is not mentioned in the GTZ research (as a source of verification). Import of other remarks regarding the investment: HAGL also obtained exploration rights for mineral exploitation that is currently underway in 2 provinces and it is investing in dams contruction on the Nam river.

Overall comment

Overall comment
Import of error check - Coordinator's overview comment: Remove/investigate investor name? Import of error check - Reviewer's overview comment: Hoang Anh Gia Lai (HAGL) is not mentioned in the GTZ research (as a source of verification). Import of other remarks regarding the investment: HAGL also obtained exploration rights for mineral exploitation that is currently underway in 2 provinces and it is investing in dams contruction on the Nam river.