Deal #10036

Lao PDR
Created at
2023-06-02
Last update
2024-06-07
Last full update
2023-09-19

Land area

Intended size
969 ha
Size under contract (leased or purchased area)
  • [2008, current] 969 ha
Size in operation (production)
  • [2023-03-15, current] 769 ha
Comment on land area
The project was started in 2008 and the full extent was quickly reached. Since then, more than 200 ha have been burned and not replanted.

Intention of investment

Intention of investment
  • [2008, current] Non-food agricultural commodities, For carbon sequestration/REDD (969 ha)
Comment on intention of investment
The total size of the area planted (in rubber trees) by the company are 969 ha and of those 661 are designated for carbon sequestration.

Carbon offset project

Carbon offset project
Yes

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
The deal is organised as a 2+3 or 1+4 arrangement, according to landowners’ (villagers’) preferences. A 2+3 arrangement is the Laotian term for contract farming, where 2 parts are provided by the farmer (land and labor) and 3 parts are provided by the company (capital, technical knowledge and market). A 1+4 arrangement corresponds to a simple land lease, which is the same as the 2+3 arrangement but labor is organized by the company as well.

Negotiation status

Negotiation status
  • [2008, current] Concluded (Contract signed)

Implementation status

Implementation status
  • [2008, current] In operation (production)

Leasing fees

Comment on leasing fee
Land-owners (independent of them working on the plots) get paid according to the sales (harvest x price).

Contract farming

Contract farming
Yes
On leased / purchased
Yes
On leased area/farmers/households
  • [2023-03-15, current] 680 ha 175
Comment on contract farming
About 70% of the workers are employed via the 2+3 scheme, about 28% are from the for affected villages but have not given any land to the company and about 2% are people from other provinces.