Please note: you are viewing an old version of this deal. The current version can be found here: Deal #1159

Deal #1159 Version #51560

Cameroon

Created at

2013-08-16

Last update

2014-03-22

Last full update

2024-04-09

Land area

Intended size

100 000 ha

Size under contract (leased or purchased area)

[2013, current] 19843.0 ha

Comment on land area

The company claimed rights on 73,086ha for a long time until the official lease was signed in 2013

Intention of investment

[current] Agriculture unspecified

Nature of the deal

Lease

Negotiation status

[2013, current] Concluded (Contract signed)

Comment on negotiation status

The actual lease was only signed in 2013

Implementation status

[2011, current] Startup phase (no production)

Comment on implementation status

Nursery set up and clearing of forest started. The operations have been suspended in 2013 after fierce criticism and protest from the local population and civil society. At the end of 2013 a short-term lease for 3 years was signed with the option to extend for 99 years depending on the level of investment the company can make in the first 3 years. The word on the ground points to a dire financial situation and an erosion of faith in Herakles Farms by investors and company’s own workers.

Leasing fees

Annual leasing fee

3 333

CFA Franc BEAC

per ha

Comment on leasing fee

With the new lease signed, the lease fee went up from 250-500 francs CFA to 3,333 francs CFA. The only payment required under the oil palm concession agreement between Herakles and the Cameroonian government is an annual ‘area rent’, which will provide just US$66,000 a year to the government once all of the land is planted.