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Deal #1208

Location #1

Spatial accuracy level
Administrative region
Location
Bako, Ethiopia

Target country
Ethiopia
Comment on location
Oromia regional state, Western Shoa Zone & Bako Tibe Woreda Coordinates: 9.13391579544359, 37.0687733527304

Land area

Intended size (in ha)
11000.0
Size under contract (leased or purchased area, in ha)
11000

Intention of investment

Intention of investment
Biofuels, Food crops, Agriculture unspecified, Renewable Energy

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
The investor was not able to renew the lease for another 30 years.

Negotiation status

Negotiation status
Concluded (Contract signed)
Comment on negotiation status
Parent company initiated liquidation proceedings in August 2019.

Implementation status

Implementation status
In operation (production)
Comment on implementation status
There are rumours that production may be abandoned. One source suggests that the investor has halted operations after the company discovered that the land acquired included floodplains. Parent company initiated liquidation proceedings in August 2019.

Leasing fees

Annual leasing fee
135
Annual leasing fee currency
Ethiopian Birr
Annual leasing fee type
per ha
Comment on leasing fees
First 6 years no lease fee.

Contract farming

Contract farming
No

Contract #1

Duration of the agreement (in years)
50

Operating company

 

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Data source #1

Data source type
Media report
File
Date
2010-01-01
Comment on data source
The Ethiopia Macroeconomic Handbook by Access Capitals

Data source #2

Data source type
Media report
File
Date
2014-10-14
Comment on data source
Farmland Grab-May raise Rs450cr through PE investor: Karuturi Global

Data source #3

Data source type
Company sources
File
Date
2011-01-01
Comment on data source
Karuturi Website

Data source #4

Data source type
Media report
File
Date
2013-02-07
Comment on data source
The Guardian- Indian Investors are forcing Ethiopians off their land

Data source #5

Data source type
Media report
File
Date
2010-01-15
Comment on data source
The Guardian- Ethiopia- country of the silver sickle- offers land dirt cheap to farming giants

Data source #6

Data source type
Personal information
File
Date
2014-05-23

Data source #7

Data source type
Media report
File
Date
2015-01-01
Comment on data source
Farmland Grab-Local Ethiopians miss out as big agriculture firms struggle in Gambella

Data source #8

Data source type
Media report
File
Date
2017-09-30
Comment on data source
The Reporter- Karuturi contemplates legal recourse for loss in Ethiopia

Data source #9

Data source type
Research Paper / Policy Report
Publication title
Women and Land Deals in Africa and Asia: Weighing the Implications and Changing the Game
Date
2013-12-04
Comment on data source
Elizabeth Daley & Sabine Pallas (2014) Women and Land Deals in Africa and Asia: Weighing the Implications and Changing the Game, Feminist Economics, 20:1, 178-201, DOI: 10.1080/13545701.2013.860232

Data source #10

Data source type
Company sources
File
Publication title
Intimation of initiation of Corporate Insolvency Resolution Process (CIRP) and appointment of Interim Resolution Professional (RFP)
Date
2019-08-12

Data source #11

Data source type
Research Paper / Policy Report
File
Publication title
Land-use changes by large-scale plantations and its effects on soil organic carbon, micronutrients and bulk density:
Date
2015-11-01
Comment on data source
Land-use changes by large-scale plantations and its effects on soil organic carbon, micronutrients and bulk density: Empirical evidence from Ethiopia (four case studies)

Consultation of local community

Community consultation
Limited consultation
Comment on consultation of local community
The investor has not made relations with the community.

Displacement of people

Comment on displacement of people
reduced land for farming and hunting, cattle dying from ingesting pesticides and the burning of unwanted maize owned by the community.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Investor promised to provide social services, such as water supply, health care, sanitation, schools, and roads. According to the report, none of these have been implemented yet. Compensation is being finalised.

Former land use

Former land use
Smallholder agriculture
Pastoralism

Former land cover

Former land cover
Cropland
Comment on former land cover
Floodplains

Detailed crop, animal and mineral information

Crops area
Corn (Maize), Oil Palm, Rice, Sugar Cane, Vegetables (unspecified)

Use of produce

Has domestic use
Yes
Has export
Yes

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
A study on the deal found that the land-use changes reduced soil carbon stock and micronutrient levels and increased soil compaction.

Feb. 20, 2020, 1:33 p.m.

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Aug. 28, 2019, 10:51 a.m.

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March 11, 2019, 12:07 p.m.

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July 27, 2017, 2:10 p.m.

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March 12, 2016, 11:15 a.m.

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Jan. 19, 2015, 11:23 a.m.

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Jan. 7, 2015, 4:05 p.m.

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Oct. 15, 2014, 3:28 p.m.

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June 9, 2014, 1:48 p.m.

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May 28, 2014, 12:39 p.m.

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May 28, 2014, 12:39 p.m.

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May 28, 2014, 12:17 p.m.

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March 6, 2013, 11:15 a.m.

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